HomeMy WebLinkAboutOrd 1329 - ZOA 17-027 - Cannabis Regulatory Permits-Personal UseCITY OF PALM DESERT
COMMUNITY DEVELOPMENT DEPARTMENT
CITY COUNCIL PUBLIC HEARING MEMORANDUM
To: Honorable Mayor and Members of the City Council
From: Eric Ceja, Principal Planner
Date: October 12, 2017
Subject: Zoning Ordinance Amendment 17-027 Cannabis Ordinance Modification
At its meeting of September 28, 2017, the City Council continued the Zoning Ordinance
Amendment and directed staff to make revisions to the proposed ordinance. Staff has made
the changes as directed. In addition, attached you will find the following:
1. Clean copy of the revised ordinance to be adopted.
2. Redline copy of the revised ordinance (Exhibits A, C, and D).
3. Correspondence received since the last City Council meeting.
Staff is recommending that the City Council pass the ordinance amendments to a second
reading in October.
ERIC CEJA
PRINCIPAL PLAtlJNER
ORDINANCE NO. 1329
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE
AMENDMENT AMENDING PALM DESERT MUNICIPAL CODE
CHAPTERS 25.34.120, 25.16 AND 25.18 TO ALLOW COMMERCIAL
CANNABIS OPERATIONS IN THE CITY, SUBJECT TO A
CONDITIONAL USE PERMIT; AND ESTABLISH CHAPTERS 5.101
COMMERCIAL CANNABIS REGULATORY PERMITS AND 8.38
PERSONAL USE OF CANNABIS
CASE NO: ZOA 17-027
WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by
Article XI, Section 7 of the Califomia Constitution, the City has the police power to regulate the
use of land and property within the City in a manner designed to promote public convenience
and general prosperity, as well as public health, welfare, and safety; and
WHEREAS, adoption and enforcement of comprehensive zoning regulations and other
land use regulations lies within the City's police powers; and
WHEREAS, California has adopted, through ballot initiative, the Control, Regulate, and
Tax Adult Use of Marijuana Act (AUMA) to regulate the adult personal and commercial use of
cannabis, pursuant to local authority preserved in the AUMA; and
WHEREAS, the City Council established an Ad Hoc Cannabis Committee, comprised
of industry representatives, community members, and City staff, to review a potential cannabis
ordinance and to make recommendations for changes to the City's Municipal Code to allow
and regulate cannabis businesses; and
WHEREAS, the Planning Commission of the City of Palm Desert, Califomia, did on the
1st day of August 2017, hold a duly noticed public hearing to consider changes to the City's
Zoning Ordinance to allow cannabis businesses in the City subject to approval of a Conditional
Use Permit and certain regulations and adopted a resolution recommending approval of the
changes to the municipal code to the City Council; and
WHEREAS, the City Council of the City of Palm Desert, California, did on the 24th day
of August, 2017, hold a duly noticed public hearing to consider changes to the Municipal Code
of the City of Palm Desert, and continued the request until September 7th, 2017; and
subsequently continued the request until September 28th, 2017, to allow additional time to
separate the proposed ordinance changes and to distinguish between personal and
commercial cannabis use; and
WHEREAS, the City Council of the City of Palm Desert, California, did on the 28th day
of September, consider the proposed changes to the Palm Desert Municipal Code to establish
land use and business regulations for personal and commercial cannabis use and operations;
and
WHEREAS, the requirements established in the ordinance ensure that cannabis
businesses can operate in the City in a safe and limited manner, subject to review and
approval of a Conditional Use Permit by the Planning Commission; and
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WHEREAS, the requirements established in this ordinance ensure that cannabis
businesses operate in accordance with State Law and requires that all commercial cannabis
operations obtain licensing from the State Bureau of Cannabis Control; and
WHEREAS, the City Council of the City of Palm Desert, California has determined that
the amendments to Municipal Code Chapters 25.34.120, 25.16, 25.18, and establishing
Chapters 5.101 and 8.38, are consistent with the General Plan and applicable state law; and
WHEREAS, at said public hearing, upon hearing and considering all testimony and
arguments, if any, of all interested persons desiring to be heard, said City Council did find
the following facts and reasons to exist to approve said request:
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm
Desert, California as follows:
SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing
recitals as its findings in support of the following regulations and further finds that the
following regulations are beneficial and appropriate to protect the health, safety and welfare
of the residents and businesses of Palm Desert within the City limits.
SECTION 2. Adoption to rescind and replace Chapter 25.34.120 "Medicinal
Cannabis Uses" with Chapter 25.34.120 "Cannabis Use and Regulations" of the Citv's
Zoning Ordinance as identified in Exhibit "A" attached to this Ordinance.
SECTION 3. Adoption of amendments to Chapter 25.16 "Commercial and
Industrial Districts" of the Citv's Zoning Ordinance as identified in Exhibit "B"
attached to this Ordinance.
SECTION 4. Adoption of amendments to Chapter 25.02 "Downtown Districts
Development Standards" of the Citv's Zoning Ordinance as identified in Exhibit "C"
attached to this Ordinance.
SECTION 5. Adoption to establish Chapter 5.101 "Commercial Cannabis
Regulatory Permits" of the Citv's Municipal Code as identified in Exhibit "D" attached
to this Ordinance.
SECTION 6. Adoption to establish Chapter 8.38 "Personal Use of Cannabis" of
the Citv's Municipal Code as identified in Exhibit "E" attached to this Ordinance.
SECTION 7. Severability. If any section, subsection, subdivision, paragraph,
sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be
unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision
shall not affect the validity or effectiveness of the remaining portions of this ordinance or any
part thereof. The Planning Commission hereby declares that it would have passed each
section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof
irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs,
sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective.
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ORDINANCE NO. 1329
SECTION 8. California Environmental Quality Act Finding. The City of Palm
Desert (City), in its capacity as the Lead Agency under the California Environmental Quality
Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from
CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a
direct or reasonable foreseeable indirect physical change in the environment, and Section
15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a
"project" and is not subject to CEQA review. At their meeting on August 1, 2017, the
Planning Commission adopted a Notice of Exemption under the CEQA guidelines.
SECTION 9. Publication. The City Clerk of the City of Palm Desert, California, is
hereby directed to publish this ordinance in The Desert Sun, a newspaper of general
circulation, published and circulated in the City of Palm Desert, California, and shall be in full
force and effect thirty (30) days after its adoption.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm
Desert, California, at its regular meeting held on the 28TH day of September, 2017, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
JAN C. HARNIK, MAYOR
3
ORDINANCE NO.: 1329
Exhibit "A"
PDMC SECTION: 25.34.120 — Commercial Cannabis Business and Personal
Cultivation
A. Purpose and Intent
It is the purpose and intent of this section to regulate the commercial cultivation,
manufacturing, testing and research, distribution, delivery, retail sale and personal
cultivation, of medicinal cannabis and non -medicinal adult -use cannabis within the City of
Palm Desert. This section is prepared in accordance with the Compassionate Use Act of
1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult -
Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "State law"), which
give local jurisdictions the authority to establish land use regulations related to the personal
and commercial uses of cannabis.
Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that
endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis
beyond the limits established in state law related to cannabis, or (3) permit any activity
relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under
state law, generally.
Nothing in this chapter shall be construed to prohibit primary caregivers and qualified
patients to lawfully act under State law.
B. Definitions
For the purpose of this chapter, the following definitions shall apply:
"Applicant" means an owner that applies for a conditional use permit under this chapter.
"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or
purified, extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means
the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does
not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made
from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or
the sterilized seed of the plant which is incapable of germination. For the purpose of this
division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the
California Health and Safety Code.
"Cannabis products" means cannabis that has undergone a process whereby the plant
material has been transformed into a concentrate, including, but not limited to, concentrated
cannabis, or an edible or topical product containing cannabis or concentrated cannabis and
other ingredients.
"City" means the City of Palm Desert.
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"Commercial cannabis business" means any commercial operation associated, in whole or
in part, with the cultivation, possession, manufacture, distribution, processing, storing,
laboratory testing and research, packaging, labeling, transportation, delivery or sale of
cannabis and cannabis products.
"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing,
grading, or trimming of cannabis.
"Daycare center" means any child day care facility other than a family day care home, and
includes infant centers, preschools, extended day care facilities, and school -age child care
centers.
"Delivery" means the commercial transfer of cannabis or cannabis products to a customer.
"Delivery" also includes the use by a retailer of any technology platform owned and
controlled by the retailer.
"Distribution" means the procurement, sale, and transport of cannabis and cannabis
products between entities permitted or licensed by the City and/or State of California.
"Licensee" means the holder of any state issued license related to Commercial Cannabis
Businesses, including but not limited to licenses issued under Division 10 of the California
Business and Professions Code.
"Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a
cannabis product.
"Manufacturer" means a permittee that conducts the production, preparation, propagation,
or compounding of cannabis or cannabis products either directly or indirectly or by
extraction methods, or independently by means of chemical synthesis, or by a combination
of extraction and chemical synthesis at a fixed location that packages or repackages
cannabis or cannabis products or labels or relabels its container.
"Owner" means any of the following: (1) a person with an aggregate ownership interest of
20 percent (20%) or more in the person applying for the permit, unless such interest is
solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other
entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be
participating in the direction, control, or management of the person applying for the permit.
"Permittee" means any person granted a conditional use permit under this chapter.
"Person" means any individual, firm, partnership, joint venture, association, corporation,
limited liability company, estate, trust, business trust, receiver, syndicate, or any other group
or combination acting as a unit, and the plural as well as the singular.
"Private residence" means a house, an apartment unit, mobile home, or other similar
dwelling unit.
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"Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis
or cannabis products to customers.
"Sell," sale," and "to sell" include any transaction whereby, for any consideration, title to
cannabis is transferred from one person to another, and includes the delivery of cannabis or
cannabis products pursuant to an order placed for the purchase of the same and soliciting
or receiving an order for the same, but does not include the return of cannabis or cannabis
products by a permittee or licensee to the permittee or licensee from whom such cannabis
or cannabis product was purchased.
"State license" means a state license issued under Division 10 of the California Business
and Professions Code.
"Testing or Research Llaboratory" means a laboratory, facility, or entity in the City that offers
or performs tests or research of cannabis or cannabis products and meets the licensing
requirements found in MAUCRSA.
"Youth center" means any public or private facility that is primarily used to host recreational
or social activities for minors, including, but not limited to, private youth membership
organizations or clubs, social service teenage club facilities, video arcades, or similar
amusement park facilities.
C. Conditional Use Permit Required.
1. The City may authorize a total of six (6) conditional use permits for retail
cannabis businesses to operate in the City of Palm Desert. No more than one (1 ] retail
cannabis business may locate on El Paseo. If applications are submitted for a greater
number of conditional use permits than are permitted by this section, selection among the
applicants shall be made by a process. and subject to criteria, established by city council
resolution. Conditional use permits for all other commercial cannabis businesses shall be
issued in accordance with the zoning and separation requirements established in this
ordinance. Prior to initiating operations and as a continuing requisite to operating a
commercial cannabis business in the City, an applicant must obtain and maintain a valid
conditional use permit, regulatory permit as required under Chapter 5.101, and a State
license for each commercial cannabis business use authorized under the conditional use
permit. Unless otherwise stated in this Section, the provisions found in Section 25.72.050
Conditional Use Permit shall apply.
2. Building permits for improvements associated with a commercial cannabis
business may be issued once an applicant has obtained a conditional use permit and
regulatory permit; however, a certificate of occupancy to operate will not be issued until said
commercial cannabis business has obtained and provided proof of a State license for each
commercial cannabis business use authorized under the conditional use permit.
3. Changes in State license type, business owner, or operation will require an
amendment to the approved conditional use permit.
ORDINANCE NO.: 1329
4. A cannabis delivery service business with a physical address outside the City
is not required to obtain a conditional use permit under this chapter, but is required to obtain
a City business license.
5. This Section does not apply to cannabis possession or use, as allowed by
State law. Regulations regarding personal ailtkation use can be found in Chapter 8.38.
D. Permitted Locations and Standards.
1. Commercial cannabis businesses may operate in the City's commercial,
industrial, office, and downtown zoning districts as identified in Section 25.16.030 "Allowed
Land Uses and Permits Requirements" and Section 25.18.040 "Land Use and Permit
Requirements" of the Palm Desert Municipal Code, with the exception of the City's
Downtown Core Overlay District, upon issuance of a conditional use permit, regulatory
permit, and State license.
a. Retailers are conditionally permitted in the Planned Commercial ("PC")
-1 District, PC-2 District, PC-3 District, PC-4 District, and Downtown (D) District. No
more than six (6) conditional use permits will be issued for retail cannabis
businesses. No more than three (3) retail cannabis businesses may locate on any
single street, and no more than one (1 ) retail cannabis business may locate on El
l
Paseo-
b. Testing or research laboratories are conditionally permitted in the
Office Professional (OP) District and Service Industrial (SI) District.
c. Commercial cultivation businesses are conditionally permitted in the SI
District.
d. Delivery -only businesses are conditionally permitted in the S1 District.
e. Distribution businesses are conditionally permitted in the SI District.
f. Manufacture businesses are conditionally permitted in the SI District.
2. Commercial cannabis businesses shall conform to the following separation
requirements:
a. No conditional use permit shall be issued to a cannabis retailer that is
located within 1,500 feet of another approved commercial cannabis business. No
more than three (3) cannabis retailers will be permitted to operate on a single street.
b. A commercial cannabis business whose main business function is
cannabis cultivation, distribution, manufacturing, transportation, or delivery, and
whose location is limited to the City's Service Industrial zoning district only, shall be
separated by 1,500 feet from another approved commercial cannabis business.
ORDINANCE NO.: 1329
c. A commercial cannabis business whose main business function is to
operate as a testing or research laboratory is not subject to a separation requirement
of 500 feet from another approved commercial cannabis business and is exempt
from the 1,500 foot separation requirement listed in subsections a. and b., above.
d. No conditional use permit will be issued for commercial cannabis
business located within 1,0600 feet of a school providing instruction in kindergarten
or any grades 1 through 12, daycare center, or youth center that is in existence at
the time the license is issued.
e. With the exception of commercial cannabis businesses whose
business is located within a mixed -use building or whose primary business function
is as a testing or research laboratory, no conditional use permits shall be issued for
commercial and industrial properties abutting public parks or private residence.
f. All separation requirements will be measured from the outer extents of
the commercial cannabis businesses lease space to the outer extents of another
commercial cannabis businesses lease space, or to the property line of a school,
daycare center and youth center.
3. Conditional Use Permit Submittal Requirements — In addition to the
requirements listed in the conditional use permit, all commercial cannabis business
applicants shall submit the following information:
a. Exterior Facade. Renderings of the business facade shall be provided
and reviewed as part of the Conditional Use Permit. Building facade plans shall
include renderings of the exterior building elevations for all side of the building. All
building facades shall be tastefully done and in keeping with the high architectural
quality and standards of the City of Palm Desert. Because State Law limits certain
advertising, the business facade and building signs shall be compatible and
complimentary to surrounding businesses and shall add visual quality to the area.
b. Energy and Water Assessments. Commercial cannabis businesses
shall supply energy and water assessments for review as part of the conditional use
permit process. These assessments shall estimate the total amount of annual
electrical and water use required to operate the commercial cannabis business.
Review of the assessment may require the applicant to supplement electrical and
water use at the site to minimize adverse environmental impacts.
E. Grounds for Permit Denial, Suspension, and Revocation
Any conditional use permit issued pursuant to the provisions of this section may be denied,
suspended, or revoked by the Planning Commission upon receiving satisfactory evidence
that the applicant or permittee or owner, its agent(s), employee(s), or any person connected
or associated with the applicant or permittee:
1. Has knowingly made false statements in the applicant's application or in any
reports or other supporting documents furnished by the applicant;
ORDINANCE NO.: 1329
2. Has failed to maintain a valid State license;
3. Has failed to comply with any applicable provision of the Palm Desert
Municipal Code, including but not limited to this chapter, the City's building, zoning, and
health and public safety regulations;
4. Has failed to comply with any condition imposed on the conditional use
permit; or
5. Has allowed the existence of or created a public nuisance in violation of the
Palm Desert Municipal Code.
6. No Conditional Use Permit will be issued where commercial cannabis businesses
are prohibited by covenants. conditions. and restrictions (CC&Rs) that clearly prohibit such
use. For buildings located in any area governed by a property owners association or
community association (association) and subject to CC&Rs, the applicant must additionally
submit a copy of a letter to the association's governing board stating that the applicant's
intent to operate a commercial cannabis business and inviting the association to submit a
letter to the City stating that: 1) the CC&Rs do not regulate such commercial uses; 2] that
commercial cannabis businesses are not prohibited by the CC&Rs: or 31 that the CC&Rs do
not allow commercial cannabis businesses as defined herein. If the applicant contests the
association's determination that commercial cannabis businesses are not allowed, the
applicant shall submit a copy of the CC&Rs to the City. The City shall provide an
opportunity for the applicant and the association to be heard based on the evidence
submitted. The decision of the City Manager shall be final.
7. For buildings subject to CC&Rs but not within an association, a copy of the
CC&Rs shall be submitted to the City to determine whether commercial cannabis
businesses are either not regulated or not clearly prohibited by the CC&Rs.
F. Personal Cultivation
City residents are permitted to cultivate cannabis on private residential property for personal
use and in accordance with MAUCRSA, subject to the following standards:
1. Outdoor Cultivation
a. Cultivation for personal use is only permitted on private residential
property developed with at least one residential dwelling unit. No more than six (6)
plants are permitted to be cultivated at a private residence. Property owners retain
the ability to prohibit renters from cultivation and any renter choosing to cultivate
shall first obtain written authorization from the property owner to cultivate on site.
b. Outdoor cultivation is limited to rear and side yard areas and only if
screened by a solid block wall no less than six (6) feet in height.
ORDINANCE NO.: 1329
c. Outdoor cultivation shall not be visible from surrounding public streets
or adjoining properties. As such, cannabis plants may not grow above the height of
the property line walls unless screened by another approved screening method.
d. Outdoor cultivation within 600 feet of a school, daycare center, or
youth center is prohibited.
2. Indoor Cultivation
a. Indoor cultivation must have adequate ventilation. Structural,
ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation
are required to obtain a building permit from the City's Building and Safety
Department.
b. The use of volatile solvents, as defined in Section 11362.3d of the
California Business and Professions Code, including but not limited to butane,
propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or
carcinogens, are prohibited for indoor cultivation at a private residence.
G. Application Fee and Reimbursement Agreement.
At the time an applicant submits an application under this Section, the applicant shall also
supply an application fee in an amount to be determined by resolution by the city council, an
executed reimbursement agreement on a form provided by the city to fully reimburse the
City for all costs, expenses, and fees, including but not limited to attorney fees and
consultant fees, incurred by the City related to the commercial cannabis business, and a
deposit in an amount as provided for in the reimbursement agreement terms.
H. Prohibited Operations.
Any commercial cannabis business that does not have (i) an approved conditional use
permit, (ii) a regulatory permit required under this code, and (iii) a State License is expressly
prohibited in all city zones and is hereby declared a public nuisance that may be abated by
the city and is subject to all available legal remedies, including, but not limited to civil
injunctions.
I. Violations and Penalties.
1. In addition to any other remedy allowed by law, any person who violates a
provision of this chapter is subject to criminal sanctions, civil actions, administrative
penalties, permit suspension, and permit revocation, if applicable.
2. Violations of this chapter constitute an infraction or misdemeanor and may be
enforced by any applicable law.
3. Violations of this chapter are hereby declared to be public nuisances.
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4. Each person is guilty of a separate offense each day a violation is allowed to
continue and every violation of this chapter shall constitute a separate offense and shall be
subject to all remedies.
5. All remedies prescribed under this chapter shall be cumulative and the
election of one or more remedies shall not bar the city from the pursuit of any other remedy
for the purpose of enforcing the provisions hereof.
ORDINANCE NO.: 1329
Exhibit C - 25.18.040 Land Use and Permit Requirements
Amend Table 25.18-1. "Use Matrix for Downtown Districts" to add the following
Land Use Zone
D ID-O DE DE-0
Retail, Service, and Office Uses
Cannabis Retail
Cannabis Testing or
Research Laboratory
Special Use Provisions
C N C N 25.34.120
C NNN 25.34.120
ORDINANCE NO.: 1329
Exhibit "D"
PDMC SECTION 5.101 — Commercial Cannabis Business Regulatory Permits
A. Purpose and Intent
It is the purpose and intent of this section to regulate the commercial cultivation,
manufacturing, testing and research, distribution, delivery, and retail sale of medicinal
cannabis and non -medicinal adult -use cannabis within the City of Palm Desert. This section
is prepared in accordance with the Compassionate Use Act of 1996 ("CUA"), the Medical
Marijuana Program Act ("MMP"), and the Medicinal and Adult -Use Cannabis Regulation and
Safety Act ("MAUCRSA") (collectively, "State law"), which give local jurisdictions the
authority to establish land use regulations related to the personal and commercial uses of
cannabis.
Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that
endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis
beyond the limits established in state law related to cannabis, or (3) permit any activity
relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under
state law, generally.
Nothing in this chapter shall be construed to prohibit primary caregivers and qualified
patients to lawfully act under State law.
B. Definitions
For the purpose of this chapter, the following definitions shall apply:
"Applicant" means an owner that applies for a regulatory permit under this chapter.
"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or
purified, extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means
the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does
not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made
from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or
the sterilized seed of the plant which is incapable of germination. For the purpose of this
division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the
California Health and Safety Code.
"Cannabis products" means cannabis that has undergone a process whereby the plant
material has been transformed into a concentrate, including, but not limited to, concentrated
cannabis, or an edible or topical product containing cannabis or concentrated cannabis and
other ingredients.
ORDINANCE NO.: 1329
"City" means the City of Palm Desert.
"City manager" means city manager or designee.
"Commercial cannabis business" means any commercial operation associated, in whole or
in part, with the cultivation, possession, manufacture, distribution, processing, storing,
laboratory testing and research, packaging, labeling, transportation, delivery or sale of
cannabis and cannabis products.
"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing,
grading, or trimming of cannabis.
"Delivery" means the commercial transfer of cannabis or cannabis products to a customer.
"Delivery" also includes the use by a retailer of any technology platform owned and
controlled by the retailer.
"Distribution" means the procurement, sale, and transport of cannabis and cannabis
products between entities permitted or licensed by the City and/or State of California.
"Fully enclosed and secured structure" means a space within a building, greenhouse, or
other approved structure which has a complete roof enclosure supported by connecting
walls extending from the ground to the floor, which is reasonably secure against
unauthorized entry, provides complete visual screening or is behind fencing or other
features providing complete visual screening, and which is accessible only through one of
more lockable doors and is inaccessible to minors.
"Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis
or cannabis products to customers and does not include cannabis cultivation or
manufacturing on the premises.
"Licensee" means the holder of any state issued license related to Commercial Cannabis
Businesses, including but not limited to licenses issued under Division 10 of the California
Business and Professions Code.
"Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a
cannabis product.
"Manufacturer" means a permittee that conducts the production, preparation, propagation,
or compounding of cannabis or cannabis products either directly or indirectly or by
extraction methods, or independently by means of chemical synthesis, or by a combination
of extraction and chemical synthesis at a fixed location that packages or repackages
cannabis or cannabis products or labels or relabels its container.
"Owner" means any of the following: (1) a person with an aggregate ownership interest of
20 percent (20%) or more in the person applying for the permit, unless such interest is
solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other
ORDINANCE NO.: 1329
entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be
participating in the direction, control, or management of the person applying for the permit.
"Permittee" means any person granted a regulatory permit under this chapter.
"Person" means any individual, firm, partnership, joint venture, association, corporation,
limited liability company, estate, trust, business trust, receiver, syndicate, or any other group
or combination acting as a unit, and the plural as well as the singular.
"Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis
or cannabis products to customers.
"Sell," sale," and "to sell" include any transaction whereby, for any consideration, title to
cannabis is transferred from one person to another, and includes the delivery of cannabis or
cannabis products pursuant to an order placed for the purchase of the same and soliciting
or receiving an order for the same, but does not include the return of cannabis or cannabis
products by a permittee or licensee to the permittee or licensee from whom such cannabis
or cannabis product was purchased.
"State license" means a state license issued under Division 10 of the California Business
and Professions Code.
"Testing or Research Laboratory" means a laboratory, facility, or entity in the City that offers
or performs tests or research of cannabis or cannabis products and meets the licensing
requirements found in MALICRSA.
C. Regulatory Permit Required.
1. Prior to initiating operations and as a continuing requisite to operating a
commercial cannabis business in the City, an applicant must obtain and maintain a valid
conditional use permit as required under Section 25.34.120, regulatory permit, and a State
license for each commercial cannabis business use authorized under the conditional use
permit.
2. Building permits for improvements associated with a commercial cannabis
business may be issued once an applicant has obtained a conditional use permit and
regulatory permit; however, a certificate of occupancy to operate will not be issued until said
commercial cannabis business has obtained and provided proof of a State license for each
commercial cannabis business use authorized under the conditional use permit.
3. Changes in State license type, business owner, or operation will require an
amendment to the approved regulatory permit.
4. This chapter does not apply to cannabis possession or use, as allowed by
State law. Regulations on personal cultivation can be found in Chapter 8.38.
ORDINANCE NO.: 1329
5. A cannabis delivery service business with a physical address outside the City
is not required to obtain a regulatory permit under this chapter, but is required to obtain a
City business license.
0. Regulatory Permit Application Requirements.
An application for a regulatory permit shall include, but shall not be limited to, the following
information:
1. The name, address, and telephone number of the applicant.
2. A description of the statutory entity or business form that will serve as the
legal structure for the applicant and a copy of its formation and organizing documents,
including, but not limited to, articles of incorporation, certificate of amendment, statement of
information, articles of association, bylaws, partnership agreement operating agreement,
and fictitious business name statement.
3. The name, address, telephone number, title, and function of each of the
interested parties described in subsection N., below.
4. A legible copy of each applicant's photo identification, such as a state driver's
license, a passport issued by the United States, or a permanent resident card.
5. A list of the license or permit types (including license or permit numbers) held
by the applicant that involve the operation of a commercial cannabis business, including the
date the license or permit was issued and the jurisdiction or State license authority that
issued the license or permit.
6. Whether the applicant has been denied a license or permit by the City, any
other jurisdiction, and/or the State that involves the operation of a commercial cannabis
business. The applicant shall provide a description of the license or permit applied for, the
name of the jurisdiction or State license authority that reviewed the license or permit
application, and the date of denial.
7. The proposed commercial cannabis business's physical address, telephone
number, website address, and e-mail address.
8. Contact information for the applicant's designated primary contact person
including the name, title, address, phone number, and e-mail address of the individual.
9. A list of every fictitious business name the applicant is operating under
including the address where the business is located.
10. Financial information including the following:
a. A list of funds belonging to the commercial cannabis business held in
savings, checking, or other accounts maintained by a financial institution. The
ORDINANCE NO.: 1329
applicant shall provide for each account, the financial institution's name, the financial
institution's address, account type, account number, and the amount of money in the
account.
b. A list of loans made to the commercial cannabis business. For each
loan, the applicant shall provide the amount of the loan, the date of the loan, term(s)
of the loan, security provided for the loan, and the name, address, and phone
number of the lender.
c. A list of investments made into the commercial cannabis business.
For each investment, the applicant shall provide the amount of the investment, the
date of the investment, term(s) of the investment, and the name, address, and phone
number of the investor.
d. A list of all gifts of any kind given to the applicant for its use in
conducting commercial cannabis business. For each gift the applicant shall provide
the value of the gift or description of the gift, and the name, address, and phone
number of the provider of the gift.
11. A list of each applicant's misdemeanor and felony convictions, if any. For
each conviction, the list must set forth the date of arrest, the offense charged, the offense
convicted, the jurisdiction of the court, and whether the conviction was by verdict, plea of
guilty, or plea of nolo contendre.
12. A complete and detailed diagram of the proposed premises showing the
boundaries of the property and the proposed premises to be permitted, showing all
boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows,
doorways, and common or shared entryways, storage areas and exterior lighting. The
diagram must show the areas in which all commercial cannabis business will take place,
including but not limited to, limited -access areas.
13. A security plan, as a separate document, outlining the proposed security
arrangements to deter and prevent unauthorized entrance into limited access areas and
theft of cannabis, in accordance with minimum security measures required by state law.
The security plan shall be reviewed by the Palm Desert Police Department and the city
manager and shall be exempt from disclosure as a public record pursuant to Government
Code Section 6255(a).
14. A comprehensive business operations plan that includes the following:
a. Business plan. A plan describing how the commercial cannabis
business will operate in accordance with this code, state law, and other applicable
regulations. The plan shall include operational, banking, and personnel procedures
to ensure adequate business knowledge, modeling and support.
ORDINANCE NO.: 1329
b. Community relations plan. A plan describing who is designated as
being responsible for outreach and communication with the surrounding community,
including the neighborhood and businesses, and how the designee can be
contacted.
c. Neighborhood responsibility plan. A plan addressing any adverse
impacts of the proposed commercial cannabis business on the surrounding area.
d. Odor control plan. A plan identifying odor control methods, including,
but not limited to, use of odor absorbing ventilation and exhaust systems, negative
air pressure, and other treatments.
e. Insurance. The applicant's certificate of commercial general liability
insurance and endorsements and certificates of all other insurance related to the
operation of the commercial cannabis business.
f. Budget. A copy of the applicant's most recent annual budget for
operations.
15. The name and address of the owner and lessor of the real property upon
which the commercial cannabis business is to be operated. In the event the applicant is not
the legal owner of the property, the application must be accompanied with a notarized
acknowledgement from the owner of the property that a commercial cannabis business will
be operated on his or her property.
16. Authorization for the city manager to seek verification of the information
contained within the application.
17. A statement in writing by the applicant that he or she certifies under penalty of
perjury that all the information contained in the application is true and correct.
18. A full and complete copy of the applicant's most current application submitted
to and approved by the applicable State licensing authority.
19. Any such additional and further information as is deemed necessary by the
city manager to administer this chapter.
E. Background Check.
The City will provide each applicant and interested parties, as described in Section N.,
below, with a `request for live scan service' form, which must be taken to a live scan
operator for fingerprinting. Each applicant must submit their fingerprint images to the Palm
Desert Police Department, California Department of Justice, and the Federal Bureau of
Investigation for fingerprint -based criminal history records review and reporting to the City.
ORDINANCE NO.: 1329
F. Additional Terms and Conditions.
Based on the information set forth in the application, the city manager may impose
reasonable terms and conditions on the proposed operations of the commercial cannabis
business in addition to those specified in this chapter.
G. Regulatory Permit Denial.
The city manager may deny an application for a regulatory permit or renewal of a
regulatory permit upon making any of the following findings:
1. The applicant or the premises for which a regulatory permit is applied does
not qualify for a permit under this chapter.
2. The applicant fails to comply with the provisions of this chapter.
3. The applicant has failed to provide information required by the city manager.
4. The applicant or permittee has been convicted of an offense that is
substantially related to the qualifications, functions, or duties of the business or profession
for which the application is made, except that if the city manager determines that the
applicant or permittee is otherwise suitable to be issued a license and granting the license
would not compromise public safety, the city manager shall conduct a thorough review of
the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the
applicant, and shall evaluate the suitability of the applicant or permittee to be issued a
permit based on the evidence found through the review. In determining which offenses are
substantially related to the qualifications, functions, or duties of the business or profession
for which the application is made, the city manager shall include, but not be limited to, the
following:
5. A felony conviction for the illegal possession for sale, sale, manufacture,
transportation, or cultivation of a controlled substance.
6. A violent felony conviction, as specified in subdivision (c) of Section 667.5 of
the Penal Code.
8. A serious felony conviction, as specified in subdivision (c) of Section 1192.7
of the California Penal Code.
9. A felony conviction involving fraud, deceit, or embezzlement.
10. The applicant, or any of its officers, directors, or owners, has been sanctioned
by a State licensing authority or a city, county, or city and county for unlicensed commercial
cannabis activities or has had a State license revoked in the three years immediately
preceding the date the application is filed with the city manager.
11. The commercial cannabis business is not properly organized or operating in
strict compliance pursuant to the Compassionate Use Act of 1996, the Medical Marijuana
Program Act ("MMP"), Medicinal and Adult -Use Cannabis Regulation and Safety Act
("MAUCRSA"), and any other applicable law, rules and regulations.
ORDINANCE NO.: 1329
H. Regulatory Permit Term.
A regulatory permit is valid for one (1) year from the date that the permit is issued, unless
suspended or revoked sooner.
1. Regulatory Permit Renewal Process.
1. To renew a regulatory permit, a completed permit renewal form and renewal
permit fee shall be received by the city manager from the permittee no earlier than sixty (60)
calendar days before the expiration of the permit and no later than the last business day
before the expiration of the permit.
2. In the event the regulatory permit is not renewed prior to the expiration date,
the permittee must cease all commercial cannabis business.
J. Regulatory Permit Surrender.
Every permittee who surrenders, abandons, or quits the permitted premises after a
certificate of occupancy is issued, or who closes the permitted premises for a period
exceeding sixty (60) consecutive calendar days after a certificate of occupancy is issued,
shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the
permitted premises, surrender the permit to the city manager. The city manager may seize
the permit of a permittee who fails to comply with the surrender provisions of this section
and may proceed to revoke the permit. If a permittee wishes to close a commercial
cannabis business for repair or refurbishment for a period of longer than sixty (60) calendar
days, the permittee shall notify the city manager of same in writing.
K. Regulatory Permit Suspension and Revocation.
The city manager may suspend, modify, or revoke a regulatory permit issued pursuant to
the provisions of this Chapter for any of the following reasons:
1. One or more of the circumstances upon which a regulatory permit could be
denied exists or has occurred;
2. One or more conditions of the regulatory permit has been violated; or
3. The permittee, its owners, officers, directors, partners, agents, or other
persons vested with the authority to manage or direct the affairs of the business have
violated any provision of this chapter or State law.
L. Appeals.
Any decision regarding the denial, suspension, or revocation of a regulatory permit may be
appealed to the city council. All appeals shall be in writing and filed with the city clerk within
ten calendar days of any decision or action that is the subject of the appeal. After receiving
the written appeal, the city clerk shall schedule a hearing before the city council. The city
council may refer the matter to a hearing officer. The city council may decide the matter
based on the recommendations and findings of the hearing officer, if it so chooses. The
decision of the city council or hearing officer shall be final.
ORDINANCE NO.: 1329
M. Operational Requirements.
All commercial cannabis businesses are subject to the following operational requirements:
1. Commercial cannabis businesses shall maintain compliance with the security
plan, business plan, community relations plan, neighborhood responsibility plan, odor
control plan, and insurance requirements submitted with their application, unless
modifications are accepted in writing by the city manager.
2. Commercial cultivation, possession, manufacture, processing, storing,
laboratory testing and research, packaging, and labeling, shall be conducted only within a
fully enclosed and secured structure that is not accessible to minors.
3. Commercial cannabis businesses shall not create nuisances such a dust,
glare, heat, noise, smoke, odor, and shall not be used to store hazardous materials,
products, or wastes.
4. Commercial cannabis businesses shall utilize product and inventory tracking
software and accounting software that is in -line with reasonable business practices within
the industry.
5. As part of the security plan, permittees shall:
a. Install and maintain security cameras that shall cover, but not be
limited to covering sale, cultivation, manufacturing, processing, transportation,
distribution areas, all doors and windows, and any other areas as reasonably
determined by the Planning Commission.
b. Operate cameras 24 hours per day, seven days per week.
c. Maintain at least 120 concurrent hours of digitally recorded
documentation.
d. Cure any disruption in security camera images expeditiously and in
good faith.
e. Install alarm systems that are operated and monitored by an
independent third party security company.
f. Shall lock all storage areas and give access to such storage areas
only to permittee and permittee's staff. No cannabis products shall be accessible to
the general public.
6. Commercial cannabis businesses shall not advertise or promote cannabis or
cannabis products that encourage use by persons under the age of 21, or promote
cannabis and cannabis products within 1,000 feet of a school, daycare, park, or youth
center.
ORDINANCE NO.: 1329
N. Interested Parties.
1. A permittee shall provide the city with names and addresses of all of the
following interested parties:
a. Persons with at least a 10% interest in the commercial cannabis
business;
b. Partners, officers, directors, and stockholders of every corporation,
limited liability company, or general or limited partnership that owns at least 10% of
the stock, capital, profits, voting rights, or membership interest of the commercial
cannabis business or that is one of the partners in the commercial cannabis
business;
c. The managers of the commercial cannabis business; and
d. The staff of the commercial cannabis business.
2. The permittee shall notify the city of any change in the information above
within 30 calendar days of the change.
3. All interested parties, as described in subsection 1, must submit to
fingerprinting and a criminal background check by the city.
4. No person shall be an interested party, as described in subsection A of this
Section, if he or she is charged with or convicted of a felony; has been charged with or
convicted of a violation of California Penal Code section 186.22 (participation in a criminal
street gang); or is currently on parole or probation for an offense relating to the sale or
distribution of a controlled substance. "Convicted" within the meaning of this section means
a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered,
but does not include any plea, verdict, or conviction that is expunged pursuant to California
law or a similar federal or state law where the expungement was granted. "Charged" within
the meaning of this section means (1) an indictment was issued by a grand jury, or an
information, complaint, or similar pleading was issued by the United States Attorney, district
attorney, city attorney, or other governmental official or agency authorized to prosecute
crimes, and (2) the criminal proceedings are currently pending.
O. Emergency Contact Manager.
A commercial cannabis business permittee shall provide the city manager with the current
name and primary and secondary telephone numbers of at least one 24-hour on -call
manager to address and resolve complaints and to respond to operating problems or
concerns associated with the commercial cannabis business.
ORDINANCE NO.: 1329
P. Community Relations Manager.
Each commercial cannabis business shall provide the city manager with the name, phone
number, facsimile number, and e-mail address of an on -site community relations or staff
person or other representative to whom the city can provide notice if there are operating
problems associated with the commercial cannabis business or refer members of the public
who may have any concerns or complaints regarding the operation of the commercial
cannabis business. Each commercial cannabis business shall also provide the above
information to its business neighbors located within one hundred (100) feet of the
commercial cannabis business as measured in a straight line without regard to intervening
structures, between the front doors of each establishment.
O. Display of Regulatory Permit.
The permittee shall display its current valid permit issued in accordance with this chapter
inside the lobby or waiting area of the main entrance to the premises. The permit shall be
displayed at all times in a conspicuous place so that it may be readily seen by all persons
entering the premises.
R. Inspections and Enforcement.
1. Recordings made by security cameras at any commercial cannabis business
shall be made immediately available to the city manager upon verbal request; no search
warrant or subpoena shall be needed to view the recorded materials.
2. The city manager shall have the right to enter all commercial cannabis
businesses from time to time unannounced for the purpose of making reasonable
inspections to observe and enforce compliance with this chapter.
3. Operation of the commercial cannabis business in non-compliance with any
conditions of approval or the provisions of this chapter shall constitute a violation of the
municipal code and shall be enforced pursuant to the provisions of this code.
4. The city manager may summarily suspend or revoke a cannabis regulatory
permit if any of the following, singularly or in combination, occur:
a. The city manager or designee determines that the commercial
cannabis business has failed to comply with this chapter or any condition of approval
or a circumstance or situation has been created that would have permitted the city
manager or designee to deny the permit under subsection F., above.
b. Operations cease for more than sixty (60) calendar days, including
during change of ownership proceedings, unless otherwise authorized by the city
manager;
c. Ownership is changed without securing a regulatory permit; or
ORDINANCE NO.: 1 329
d. The commercial cannabis business fails to allow inspection of the
records, security recordings, the activity Togs, or the premises by authorized city
officials.
S. Liability and Indemnification.
1. To the fullest extent permitted by law, any actions taken by a public officer or
employee under the provisions of this chapter shall not become a personal liability of any
public officer or employee of the City.
2. To the maximum extent permitted by law, the permittees under this chapter
shall defend (with counsel acceptable to the City), indemnify and hold harmless the City of
Palm Desert, the Palm Desert City Council, and its respective officials, officers, employees,
representatives, agents and volunteers (hereafter collectively called City) from any liability
damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action,
proceedings or judgment (including legal costs, attorneys' fees, expert witness or consultant
fees, City Attorney or staff time, expenses or costs (collectively called "action") against the
City to attack, set aside, void or annul, any cannabis -related approvals and actions and
comply with the conditions under which such permit is granted, if any. The City may elect,
in its sole discretion, to participate in the defense of said action and the permittee shall
reimburse the City for its reasonable legal costs and attorneys' fees.
3. Within ten (10) calendar days of the service of the pleadings upon the City of
any action as specified in Subsection 2., above, the permittee shall execute a letter of
agreement with the City, acceptable to the Office of the City Attorney, which memorializes
the above obligations. These obligations and the letter of agreement shall survive
termination, extinguishment or invalidation of the cannabis -related approval. Failure to
timely execute the letter of agreement does not relieve the applicant of any of the
obligations contained in this section or any other requirements or performance or operating
standards that may be imposed by the City.
To the fullest extent permitted by law, the City shall not assume any liability whatsoever,
with respect to approving any regulatory permit pursuant to this chapter or the operation of
any commercial cannabis business approved pursuant to this chapter.
T. Compliance with State Law.
All commercial cannabis businesses shall comply fully with all of the applicable restrictions
and mandates set forth in state law, including without limitation the Compassionate Use Act
of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult -
Use Cannabis Regulation and Safety Act ("MAUCRSA").
ORDINANCE NO.: 1329
U. Violations and Penalties.
1. In addition to any other remedy allowed by law, any person who violates a
provision of this chapter is subject to criminal sanctions, civil actions, administrative
penalties, permit suspension, and permit revocation.
2. Violations of this chapter constitute an infraction or misdemeanor and may be
enforced by any applicable law.
3. Violations of this chapter are hereby declared to be public nuisances.
4. Each person is guilty of a separate offense each day a violation is allowed to
continue and every violation of this chapter shall constitute a separate offense and shall be
subject to all remedies.
5. All remedies prescribed under this chapter shall be cumulative and the
election of one or more remedies shall not bar the city from the pursuit of any other remedy
for the purpose of enforcing the provisions hereof.
ORDINANCE NO.: 1329
Exhibit "A"
PDMC SECTION: 25.34.120 — Commercial Cannabis Business and Personal
Cultivation
A. Purpose and Intent
It is the purpose and intent of this section to regulate the commercial cultivation,
manufacturing, testing and research, distribution, delivery, retail sale and personal
cultivation, of medicinal cannabis and non -medicinal adult -use cannabis within the City of
Palm Desert. This section is prepared in accordance with the Compassionate Use Act of
1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult -
Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "State law"), which
give local jurisdictions the authority to establish land use regulations related to the personal
and commercial uses of cannabis.
Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that
endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis
beyond the limits established in state law related to cannabis, or (3) permit any activity
relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under
state law, generally.
Nothing in this chapter shall be construed to prohibit primary caregivers and qualified
patients to lawfully act under State law.
B. Definitions
For the purpose of this chapter, the following definitions shall apply:
"Applicant" means an owner that applies for a conditional use permit under this chapter.
"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or
purified, extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means
the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does
not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made
from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or
the sterilized seed of the plant which is incapable of germination. For the purpose of this
division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the
California Health and Safety Code.
"Cannabis products" means cannabis that has undergone a process whereby the plant
material has been transformed into a concentrate, including, but not limited to, concentrated
cannabis, or an edible or topical product containing cannabis or concentrated cannabis and
other ingredients.
"City" means the City of Palrn Desert.
ORDINANCE NO.: 1329
"Commercial cannabis business" means any commercial operation associated, in whole or
in part, with the cultivation, possession, manufacture, distribution, processing, storing,
laboratory testing and research, packaging, labeling, transportation, delivery or sale of
cannabis and cannabis products.
"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing,
grading, or trimming of cannabis.
"Daycare center" means any child day care facility other than a family day care home, and
includes infant centers, preschools, extended day care facilities, and school -age child care
centers.
"Delivery" means the commercial transfer of cannabis or cannabis products to a customer.
"Delivery" also includes the use by a retailer of any technology platform owned and
controlled by the retailer.
"Distribution" means the procurement, sale, and transport of cannabis and cannabis
products between entities permitted or licensed by the City and/or State of California.
"Licensee" means the holder of any state issued license related to Commercial Cannabis
Businesses, including but not limited to licenses issued under Division 10 of the California
Business and Professions Code.
"Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a
cannabis product.
"Manufacturer" means a permittee that conducts the production, preparation, propagation,
or compounding of cannabis or cannabis products either directly or indirectly or by
extraction methods, or independently by means of chemical synthesis, or by a combination
of extraction and chemical synthesis at a fixed location that packages or repackages
cannabis or cannabis products or labels or relabels its container.
"Owner" means any of the following: (1) a person with an aggregate ownership interest of
20 percent (20%) or more in the person applying for the permit, unless such interest is
solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other
entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be
participating in the direction, control, or management of the person applying for the permit.
"Permittee" means any person granted a conditional use permit under this chapter.
"Person" means any individual, firm, partnership, joint venture, association, corporation,
limited liability company, estate, trust, business trust, receiver, syndicate, or any other group
or combination acting as a unit, and the plural as well as the singular.
"Private residence" means a house, an apartment unit, mobile home, or other similar
dwelling unit.
ORDINANCE NO.: 1329
"Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis
or cannabis products to customers.
"Sell," sale," and "to sell" include any transaction whereby, for any consideration, title to
cannabis is transferred from one person to another, and includes the delivery of cannabis or
cannabis products pursuant to an order placed for the purchase of the same and soliciting
or receiving an order for the same, but does not include the return of cannabis or cannabis
products by a permittee or licensee to the permittee or licensee from whom such cannabis
or cannabis product was purchased.
"State license" means a state license issued under Division 10 of the California Business
and Professions Code.
"Testing or Research Laboratory" means a laboratory, facility, or entity in the City that offers
or performs tests or research of cannabis or cannabis products and meets the licensing
requirements found in MAUCRSA.
"Youth center" means any public or private facility that is primarily used to host recreational
or social activities for minors, including, but not limited to, private youth membership
organizations or clubs, social service teenage club facilities, video arcades, or similar
amusement park facilities.
C. Conditional Use Permit Required.
1. The City may authorize a total of six (6) conditional use permits for retail
cannabis businesses to operate in the City of Palm Desert. No more than one (1) retail
cannabis business may locate on El Paseo. Conditional use permits for all other commercial
cannabis businesses shall be issued in accordance with the zoning and separation
requirements established in this ordinance. Prior to initiating operations and as a continuing
requisite to operating a commercial cannabis business in the City, an applicant must obtain
and maintain a valid conditional use permit, regulatory permit as required under Chapter
5.101, and a State license for each commercial cannabis business use authorized under the
conditional use permit. Unless otherwise stated in this Section, the provisions found in
Section 25.72.050 Conditional Use Permit shall apply.
2. Building permits for improvements associated with a commercial cannabis
business may be issued once an applicant has obtained a conditional use permit and
regulatory permit; however, a certificate of occupancy to operate will not be issued until said
commercial cannabis business has obtained and provided proof of a State license for each
commercial cannabis business use authorized under the conditional use permit.
3. Changes in State license type, business owner, or operation will require an
amendment to the approved conditional use permit.
4. A cannabis delivery service business with a physical address outside the City
is not required to obtain a conditional use permit under this chapter, but is required to obtain
a City business license.
ORDINANCE NO.: 1329
5. This Section does not apply to cannabis possession or use, as allowed by
State law. Regulations regarding personal cultivation can be found in Chapter 8.38.
D. Permitted Locations and Standards.
1. Commercial cannabis businesses may operate in the City's commercial,
industrial, office, and downtown zoning districts as identified in Section 25.16.030 "Allowed
Land Uses and Permits Requirements" and Section 25.18.040 "Land Use and Permit
Requirements" of the Palm Desert Municipal Code, with the exception of the City's
Downtown Core Overlay District, upon issuance of a conditional use permit, regulatory
permit, and State license.
a. Retailers are conditionally permitted in the Planned Commercial ("PC")
-1 District, PC-2 District, PC-3 District, PC-4 District, and Downtown (D) District. No
more than six (6) conditional use permits will be issued for retail cannabis
businesses. No more than three (3) retail cannabis businesses may locate on any
single street, and no more than one (1) retail cannabis business may locate on El
Paseo.
b. Testing or research laboratories are conditionally permitted in the
Office Professional (OP) District and Service Industrial (SI) District.
c. Commercial cultivation businesses are conditionally permitted in the S1
District.
d. Delivery -only businesses are conditionally permitted in the SI District.
e. Distribution businesses are conditionally permitted in the SI District.
f. Manufacture businesses are conditionally permitted in the SI District.
2. Commercial cannabis businesses shall conform to the following separation
requirements:
a. No conditional use permit shall be issued to a cannabis retailer that is
located within 1,500 feet of another approved commercial cannabis business. No
more than three (3) cannabis retailers will be permitted to operate on a single street.
b. A commercial cannabis business whose main business function is
cannabis cultivation, distribution, manufacturing, transportation, or delivery, and
whose location is limited to the City's Service Industrial zoning district only, shall be
separated by 1,500 feet from another approved commercial cannabis business.
c. A commercial cannabis business whose main business function is to
operate as a testing or research laboratory is not subject to a separation requirement
from another approved commercial cannabis business.
ORDINANCE NO.: 1329
d. No conditional use permit will be issued for commercial cannabis
business located within 1,000 feet of a school providing instruction in kindergarten or
any grades 1 through 12, daycare center, or youth center that is in existence at the
time the license is issued.
e. With the exception of commercial cannabis businesses whose
business is located within a mixed -use building or whose primary business function
is as a testing or research laboratory, no conditional use permits shall be issued for
commercial and industrial properties abutting public parks or private residence.
f. All separation requirements will be measured from the outer extents of
the commercial cannabis businesses lease space to the outer extents of another
commercial cannabis businesses lease space, or to the property line of a school,
daycare center and youth center.
3. Conditional Use Permit Submittal Requirements — In addition to the
requirements listed in the conditional use permit, all commercial cannabis business
applicants shall submit the following information:
a. Exterior Facade. Renderings of the business facade shall be provided
and reviewed as part of the Conditional Use Permit. Building facade plans shall
include renderings of the exterior building elevations for all side of the building. All
building facades shall be tastefully done and in keeping with the high architectural
quality and standards of the City of Palm Desert. Because State Law limits certain
advertising, the business facade and building signs shall be compatible and
complimentary to surrounding businesses and shall add visual quality to the area.
b. Energy and Water Assessments. Commercial cannabis businesses
shall supply energy and water assessments for review as part of the conditional use
permit process. These assessments shall estimate the total amount of annual
electrical and water use required to operate the commercial cannabis business.
Review of the assessment may require the applicant to supplement electrical and
water use at the site to minimize adverse environmental impacts.
E. Grounds for Permit Denial, Suspension, and Revocation
Any conditional use permit issued pursuant to the provisions of this section may be denied,
suspended, or revoked by the Planning Commission upon receiving satisfactory evidence
that the applicant or permittee or owner, its agent(s), employees), or any person connected
or associated with the applicant or permittee:
1. Has knowingly made false statements in the applicant's application or in any
reports or other supporting documents furnished by the applicant;
2. Has failed to maintain a valid State license;
3. Has failed to comply with any applicable provision of the Palm Desert
Municipal Code, including but not limited to this chapter, the City's building, zoning, and
health and public safety regulations;
ORDINANCE NO.: 1329
4. Has failed to comply with any condition imposed on the conditional use
permit; or
5. Has allowed the existence of or created a public nuisance in violation of the
Palm Desert Municipal Code.
6. No Conditional Use Permit will be issued where commercial cannabis businesses
are prohibited by covenants, conditions, and restrictions (CC&Rs) that clearly prohibit such
use. For buildings located in any area governed by a property owners association or
community association (association) and subject to CC&Rs, the applicant must additionally
submit a copy of a letter to the association's governing board stating that the applicant's
intent to operate a commercial cannabis business and inviting the association to submit a
letter to the City stating that: 1) the CC&Rs do not regulate such commercial uses; 2) that
commercial cannabis businesses are not prohibited by the CC&Rs; or 3) that the CC&Rs do
not allow commercial cannabis businesses as defined herein. If the applicant contests the
association's determination that commercial cannabis businesses are not allowed, the
applicant shall submit a copy of the CC&Rs to the City. The City shall provide an
opportunity for the applicant and the association to be heard based on the evidence
submitted. The decision of the City Manager shall be final.
7. For buildings subject to CC&Rs but not within an association, a copy of the
CC&Rs shall be submitted to the City to determine whether commercial cannabis
businesses are either not regulated or not clearly prohibited by the CC&Rs.
F. Personal Cultivation
City residents are permitted to cultivate cannabis an private residential property for personal
use and in accordance with MAUCRSA, subject to the following standards:
1. Outdoor Cultivation
a. Cultivation for personal use is only permitted on private residential
property developed with at least one residential dwelling unit. No more than six (6)
plants are permitted to be cultivated at a private residence. Property owners retain
the ability to prohibit renters from cultivation and any renter choosing to cultivate
shall first obtain written authorization from the property owner to cultivate on site.
b. Outdoor cultivation is limited to rear and side yard areas and only if
screened by a solid block wall no less than six (6) feet in height.
c. Outdoor cultivation shall not be visible from surrounding public streets
or adjoining properties. As such, cannabis plants may not grow above the height of
the property line walls unless screened by another approved screening method.
d. Outdoor cultivation within 600 feet of a school, daycare center, or
youth center is prohibited.
2. Indoor Cultivation
ORDINANCE NO.: 1329
a. Indoor cultivation must have adequate ventilation. Structural,
ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation
are required to obtain a building permit from the City's Building and Safety
Department.
b. The use of volatile solvents, as defined in Section 11362.3d of the
California Business and Professions Code, including but not limited to butane,
propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or
carcinogens, are prohibited for indoor cultivation at a private residence.
G. Application Fee and Reimbursement Agreement.
At the time an applicant submits an application under this Section, the applicant shall also
supply an application fee in an amount to be determined by resolution by the city council, an
executed reimbursement agreement on a form provided by the city to fully reimburse the
City for all costs, expenses, and fees, including but not limited to attorney fees and
consultant fees, incurred by the City related to the commercial cannabis business, and a
deposit in an amount as provided for in the reimbursement agreement terms.
H. Prohibited Operations.
Any commercial cannabis business that does not have (i) an approved conditional use
permit, (ii) a regulatory permit required under this code, and (Hi) a State License is expressly
prohibited in all city zones and is hereby declared a public nuisance that may be abated by
the city and is subject to all available legal remedies, including, but not limited to civil
injunctions.
I. Violations and Penalties.
1. In addition to any other remedy allowed by law, any person who violates a
provision of this chapter is subject to criminal sanctions, civil actions, administrative
penalties, permit suspension, and permit revocation, if applicable.
2. Violations of this chapter constitute an infraction or misdemeanor and may be
enforced by any applicable law.
3. Violations of this chapter are hereby declared to be public nuisances.
4. Each person is guilty of a separate offense each day a violation is allowed to
continue and every violation of this chapter shall constitute a separate offense and shall be
subject to all remedies.
5. All remedies prescribed under this chapter shall be cumulative and the
election of one or more remedies shall not bar the city from the pursuit of any other remedy
for the purpose of enforcing the provisions hereof.
ORDINANCE NO.:1329
Exhibit B
Chapter 25.16 — Commercial and Industrial Districts
Sections in This Chapter
25.16.010 Purpose 16-1
25.16,020 Characteristics of the Commercial and Industrial Districts 16-1
25.16.030 Allowed Land Uses and Permit Requirements 16-2
25.16.040 Specific Use Standards 16-3
25.16.050 Development Standards 16-6
25.16.010 Purpose
The purpose of this chapter is to establish commercial and industrial zoning districts in the City,
along with allowed use and development standards applicable to those districts. These districts
are consistent with and implement the City's General plan commercial and industrial district and
center land use categories as indicated in Table 25.04-1 (Zoning Districts).
25.16.020 Characteristics of the Commercial and Industrial Districts
The following descriptions of each district identify the characteristic uses, intensity of uses, and
intended level of development for that district.
A. Office Professionall. (OP). This district is intended for various levels of intensities for
business, office, administrative, research and development, and/or professional land
uses. This district is characterized by urban streetscapes with formal tree arrangements
and larger block sizes.
B. Planned Commercial (PC). The PC districts provide flexibility for commercial and
mixed -use development. Generally, these districts are characterized as coordinated
projects that integrate compatible commercial and residential mixed -uses. PC districts
balance the need for automobile parking and pedestrian connections that are organized
around walkable streetscapes and other pedestrian amenities. PC districts are further
refined based on property size, proximity to residential uses, and as described below:
1. Specialty Commercial Center (PC-1). The specialty commercial center
provides for small-scale commercial development that primarily serves
surrounding neighborhoods and other immediate land uses. This district is
characterized as being located in close proximity to residential development and,
as such, provides high levels of convenient pedestrian access. This district also
promotes the development of mixed -use (10.0 — 15.0 du/ac) as a transition
between residential uses and other development types.
2. District Commercial Center (PC-2). The district commercial center provides
convenient shopping opportunities outside of the downtown core area. This PC
district provides large -format retail areas for the broader community and provides
flexibility for the integration of mixed -use (10.0 — 15.0 du/ac) on upper floors of
commercial buildings. The center is also characterized by traditional parking lots
16-1jPage Chapter 25.16 Commercial and Industrial Districts
with formal tree arrangements and spacing and sufficient space for pedestrian
areas and open space.
3. Regional Commercial Center (PC-3). The regional commercial center provides
a unified area for commercial uses which offer a wide range of goods and
services, including comparison and convenience shopping, entertainment,
cultural, and recreational uses. The district provides for large-scale, large -format,
commercial development that serves the broader region and is generally located
around major intersections and properties in proximity to freeway overpasses.
Although this district is predominately commercial, mixed -use (10.0 — 15.0 du/ac)
is allowed and should be integrated into developments on the upper floor.
4. Resort Commercial Center (PC-4). The resort commercial center allows for the
development of a range of entertainment, hospitality, restaurants, and
recreational facilities with related commercial uses to serve visitors to the City.
The district is characterized by multi -story development that provides recreation
and entertainment amenities in accordance with its urban/natural setting, and
provides flexibility to integrate mixed -use (10.0 du/ac).
C. Service Industrial (SI). This district allows for the development of traditional business
parks that allow for manufacture, distribution, research and development, and service of
products intended for use within Palm Desert and surrounding communities. The district
is characterized as having a more urban setting with buildings located near roadways,
shared and connected parking, and streetscapes with formal street tree arrangements.
25.16.030 Allowed Land Uses and Permit Requirements
Table 25.1E-1 (Use Matrix for Commercial and Industrial Districts) identifies allowed uses and
corresponding permit requirements for commercial and industrial districts and all other
provisions of this title. Descriptions/definitions of the land uses can be found in Chapter 25.99
(Definitions). The "Special Use Provisions" column in the table identifies the specific chapter or
section where additional regulations for the specific use type are located within this ordinance.
Use regulations in the table are shown with representative symbols by use classification listing:
"P" symbolizes uses permitted by right, "A" symbolizes uses that require approval of an
administrative use permit, "C" symbolizes uses that require approval of a conditional use permit,
and "N" symbolizes uses that are not permitted. Uses that are not listed are not permitted.
However, the Commission may make a use determination as outlined in Section 25.72.020 (Use
Determinations).
Chapter 25.16 Commercial and Industrial Districts 16-21Page
ORDINANCE NO.:1329
Table 25.16-1: Use Matrix for Commercial and Industrial Districts
Commercial/industrial District
(P=Permitted; A=Administrative Use
Permit; C=Conditional Use Permit;
N=Nat Permitted)
Special Use
Provisions
OP
PC-1
I PC-2
PC-3
J PC-4
SI
Residential Uses
Caretaker housing
N
CC
C
CC
CC
N
N
N j
N
N
CC
C
CC
P
C
C
C
C
25.16.040.A
_
Condominium
C
5.16.040.B
Dwelling, duplex
C
C
C
C
CC
N
25.16.040.B
Dwelling, multifamily
25.16.040_B
25.Mii.040.B
25.16.040.B
Dwelling, single-family
Group home
C
N
C C
N
C
N
Single -room occupancies N
N
N
N
Homeless Shelter INN
N
NNP
Recreation, Resource Preservation, Open Space, and Public Assembly Uses
Amusement facility, indoors
N
N
N
N
C
CC
N
Amusement facility, outdoors
Zsommunity facility
N
N
N
N
C
GCN
NNP
C
C
Day care center
N 1 C
N P
N
N
Emergency shelters
N
NNP
Entertainment facility, indoor
N
N
CC
C
C
N
N
N
N
P
P
Entertainment facility, outdoor
P
P
N
Institution, educational
G N
N
N
N 1_
P
C
C
C 1
N,
N
Institution, general
1 N
C N
Institution, religious i
N
C
N
Open space (developed or natural) N
P
N
N
N
P
P
NPN
P
Recreation iAcility, commercial
N
N
Recreation facility, private
N
P
PP
Theater/auditorium ! N
P N
N
Utility, Transportation, Public Facility, and Communication Uses
Commercial communication tower .
Commercial parking lot _ _ �_
Public utility installation INN
Public facility (utility or service)
C
C
C J
N
N
N
C
f N
C
N
C
N
25.16.040.0
C
N
N
N
NNP
NNP
P
Utility facilityN N C
N
N
16-31Page Chapter 25.16 Commercial and Industrial Districts
Retail, Service, and Office Uses
Adult entertainment N N N NNC 25.16.040,D
Ancillary commercial A P P P N A 25.16.040.E
Art gallery AP P P PC
Art studio AP P P PC
Bed and breakfast N A A A A N
Business support services N N N NPP
Cannabis Retail NC C C C N 25.34,120
Cannabis Testing and Resaerch Laboratory C N N NNC 25.34.120
Convention and visitors bureau N N P NPN
Drugstore N P P P N N
Financial institution C P P P N N
Grocery store N P P PNN 25.16.040.F
Health club, gyms or studios NA P P PC
Hotel N A A AP N
Liquor store N P P P N N
Liquor, beverage and food items shop N P P PPN
Medical, clinic P N P PNN
Medical, office P P P PNN
Medical, hospital N N N NNC
Medical, laboratory P N N NNP
Medical office, accessory N N N NNP 25.16.040.G
Medical, research facility P P N NNC
Mortuary N N N NNP
Office, professional P N P P PP
Office, local government P N N NNP
Office, travel agency PP P P P N
Outdoor sales N N A A A A
Personal services N P P P P N
Restaurant A C C C P C 25.16.040.E I H
Retail N P P P P N
Retail, bulky items N N N PPN
Spa N N P P P N
Time-share project N N N CCN
Automobile and Vehicle Uses
Chapter 25.16 Commercial and Industrial Districts 16-4/Page
ORDINANCE NO.:1329
Automotive rental agency
(Automotive gasoline station
Automotive service facility
Automotive sales new and used (Outdoor / Indoor)
Automotive sales of accessory parts and supplies
Vehicle storage facility
Industrial, Manufacturing, and Processing Uses
Cannabis Cultivation
Cannabis Delivery
Cannabis Distribution
Cannabis Manufacturing
Industrial planned unit development
N
N
N
N
N
N
N
N
N
N
Light industrial and research and development N
Maintenance facility N
Pest control facility N
Preparation of foodstuffs N
Production of home and office decor accessories N
Warehouse or storage facility N
Temporary Uses
See Section 25.34.080
N N NPP
C CNC
C CNP
25.34.090
25.34.090
N N NNC
N N PPN
N N NNP 25.16.040.1
N N NNC 25.34.120
N N NNC 25.34.120
N N N NC 25.34.120
N N NNC 25.34.120
N N NNP
N N NNP
N N NNP
N N N N P
N N NNP
N N N N
N N N N
The establishment may be permitted with an Administrative Use Permit but may be elevated to a Conditional Use Permit at the
discretion of the ZA based on: parking, traffic, or other impacts.
25.16.040 Specific Use Standards
The following provisions apply as indicated to the uses listed in Table 25.16-1 (Use Matrix for
Commercial and Industrial Districts):
A. Caretaker Housing. Permitted only when incidental to and on the same site as a
permitted or conditional use.
B. Residential (mixed use). Residential uses may be established and maintained to be
compatible with the permitted or the approved conditional uses in the vicinity.
C. Commercial Communication Tower. All communication towers and antennas shall
satisfy the requirements of Section 25.34.130 (Communication Tower and Antenna
Regulations).
16-5fPage Chapter 25.16 Commercial and Industrial Districts
D. Adult Entertainment. All uses defined as adult entertainment are required to meet the
provisions established by Section 25.34.110 (Adult Entertainment Establishments).
E. Commercial (ancillary). Applicable only to office and industrial complexes that occupy
a minimum of two acres. Restaurant uses shall not exceed 10 percent of the gross
leasable floor area and the total ancillary commercial uses, including restaurants, shall
not exceed 25 percent of the gross leasable floor area of the complex. A Conditional Use
Permit or Administrative Use Permit is required to review land -use compatibility and to
ensure that adequate parking exists to serve the commercial use.
F. Grocery Stores. Limited to a maximum building size of 10,000 square feet in PC-1,
30,000 square feet in PC-2, and 60,000 square feet in PC-3.
G. Medical Offices, accessory. Permitted only when ancillary to and in conjunction with
the operation of a hotel.
H. Restaurants. Drive -through and drive-in facilities permitted by a conditional use permit
as follows:
1. Permitted locations.
Within Freeway Commercial Overlay District
ii. On the following streets and as indicated in Figure 25.10-2: Monterey Avenue
and Portola Avenue from the northern city boundary to the north side of Gerald Ford
❑ rive.
2. Development standards.
Drive -through lanes and window facilities shall be designed in a manner
that they are screened and/or not visible from surrounding public streets.
ii. Drive -through vehicle queue must be permanently screened and/or not
visible from surrounding public streets.
I. Vehicle Service and Storage Facility. The storage facility must be completely
screened.
25.16.050 Development Standards
The development standards included in Table 25.16-2 (Commercial and Industrial District
Development Standards) are applicable to commercial and industrial districts. These standards,
along with other development standards (e.g., landscaping requirements, signs, and parking
standards) located in the zoning ordinance, are intended to assist property owners and project
designers in understanding the City's minimum requirements and expectations for high -quality
development.
A. Special setback requirements. In addition to the setback requirements in Table 25.16-
2 (Commercial and Industrial District Development Standards) the following special
setback provisions apply:
1. On interior lots in the PC zone districts, setbacks shall be the lesser of the
setback requirement listed in Table 25.16-2 (Commercial and Industrial District
Development Standards). For exterior lots or projects perimeter adjacent to
public streets the setback standards below shall apply. Said setbacks shall be
measured from the property line.
2. Building setbacks from planned street lines:
Chapter 25.16 Commercial and Industrial Districts 16-6JPage
ORDINANCE NO.:1329
Table 25.16-2: Setbacks from Planned Street Lines
Street Type
Setback ❑istance
Freeway 50 feet
Major 32 feet
Arterial 32 feet
Collector 25 feel
Local 25 feet
3. Where commercial districts abut a residential district, a fence or wall 6 feet in
height shall be located adjoining the property line except adjoining a required
front yard. All commercial district property lines adjoining a residential district
shall be landscaped with plant materials for an area 10 feet in depth.
4. All nonpaved areas shall be landscaped and treated or maintained to eliminate
dust.
B. Exceptions: ❑evelopment standards within the PC districts may be modified through the
precise plan process as specified in Section 25.72.030Special standards within the
Service Industrial (SI) district.
Sound emanating from industrial properties shalt be muffled so as not to become
objectionable due to intermittence, beat frequency, or shrillness. The measurements of
sound shall be measured at the lot lines and shall be measured to decibels with a sound
level meter and associated octave band filter, manufactured according to standards
prescribed by the American Standards Association. Maximum permissible sound pressure
levels shall comply with the limits at table 25.16-2 and the following standards:
Table 25.16-3: Maximum Permitted ❑ecibels
Octave Band in Cycles-
Second(decibels)
Adjacent Residential ❑istrict
Boundaries(decibels)
Lot Line of Use in the 5l
Zone(decibels)
0-75 72 79
76-150 59 74
151-300 52 66
301-600 46 59
601-1200 42 53
1201-2400 39 47
2401-4800 34 41
Above 4800 32 39
1. The maximum sound pressure level in decibels shall be 0.002 dynes per square
centimeter.
16-71Page Chapter 25.16 Commercial and Industrial Districts
2. Toxic gases or matter shall not be emitted which can cause any damage to
health, animals, or vegetation, or other forms of property, or which can cause any
excessive soiling beyond the lot lines of the use.
3. Vibration from any machine, operation, or process which can cause a
displacement of .003 of 1 inch as measured at the lot lines of the use shall be
prohibited. Shock absorbers or similar mounting shall be allowed which will
reduce vibration below .003 of 1 inch as measured at the lot lines.
4. Glare and heat from any source shall not be produced beyond the lot lines of the
use.
5. Storage of refuse, trash, rubbish, or other waste material outside a permanent
building shall be kept in enclosed containers in areas other than the front and
side yards.
6. Lighting, including spotlights, floodlights, electrical reflectors, and other means of
illumination for signs, structures, landscaping, parking areas, loading and
unloading areas, and the like shall be shielded, focused, directed, and arranged
as to prevent glare or direct illumination on streets or adjoining property.
7. Unless specific additional uses are permitted by the certificate of occupancy, the
use of radioactive materials within the SI district shall be limited to measuring,
gauging and calibration devices, as tracer elements, in x-ray and like apparatus,
and in connection with the processing and preservation of foods. In no event
shall radioactivity, when measured at each lot line, be in excess of 2.7 x 10-11
micro curies per milliliter of air at any moment of time.
8. Electrical and electronic devices and equipment shall be suitably wired, shielded,
and controlled so that in operation they shall not, beyond the lot lines, emit any
electrical impulses or waves which will adversely affect the operation and control
of any other electrical or electronic devices and equipment. (Ord. 96 § 1, 1975,
Exhibit A § 25.20-7.16)
C. Special standards within the Office Professional (OP) district.
1. When adjacent to single -story residential, the rear and exterior side yard
setbacks shall be increased by 6.43 feet for each foot of building height above 18
feet up to 25 feet tall. See table below:
Table 25.16-4: Additional Setback in OP District
Height
19 feet
20 feet
21 feet
22 feet
23 feet
Setback
Distance
26.43 feet
32.86 feet
39.29 feet
45.72 feet
52.15 feet
Chapter 25.16 Commercial and Industrial Districts 16-8/Page
ORDINANCE NO.:1329
24 feet
25 feet
58.58 feet
65 feet
2. Second -story Windows: Second -story windows are allowed to face adjacent
single -story residential zones with sufficient screening; either with landscaping or
another method as approved through the precise plan process.
16-9/Page Chapter 25.16 Commercial and Industrial Districts
Table 25.16-4: Commercial and Industrial District Development Standards
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ORDINANCE NO.:1329
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16-111Page
ORDINANCE NO.: 1329
Exhibit C - 25.18.040 Land Use and Permit Requirements
Amend Table 25.18-1. "Use Matrix for Downtown Districts" to add the following
Land Use
Zone Special Use Provisions
D 1D-0 1DE 1DE-0
Retail, Service, and Office Uses
Cannabis Retail C N C N 25.34.120
Cannabis Testing and C N N N 25.34.120
Research Laboratory
ORDINANCE NO.: 1329
Exhibit "D"
PDMC SECTION 5.101 — Commercial Cannabis Business Regulatory Permits
A. Purpose and Intent
It is the purpose and intent of this section to regulate the commercial cultivation,
manufacturing, testing and research, distribution, delivery, and retail sale of medicinal
cannabis and non -medicinal adult -use cannabis within the City of Palm Desert. This section
is prepared in accordance with the Compassionate Use Act of 1996 ("CUA"), the Medical
Marijuana Program Act ("MMP"), and the Medicinal and Adult -Use Cannabis Regulation and
Safety Act ("MAUCRSA") (collectively, "State law"), which give local jurisdictions the
authority to establish land use regulations related to the personal and commercial uses of
cannabis.
Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that
endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis
beyond the limits established in state law related to cannabis, or (3) permit any activity
relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under
state law, generally.
Nothing in this chapter shall be construed to prohibit primary caregivers and qualified
patients to lawfully act under State law.
B. Definitions
For the purpose of this chapter, the following definitions shall apply:
"Applicant" means an owner that applies for a regulatory permit under this chapter.
"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude ar
purified, extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means
the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does
not include the mature stalks of the plant, fiber produced from the stalks, oil ar cake made
from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or
the sterilized seed of the plant which is incapable of germination. For the purpose of this
division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the
California Health and Safety Code.
"Cannabis products" means cannabis that has undergone a process whereby the plant
material has been transformed into a concentrate, including, but not limited to, concentrated
cannabis, or an edible or topical product containing cannabis or concentrated cannabis and
other ingredients.
ORDINANCE NO.: 1329
"City" means the City of Palm Desert.
"City manager" means city manager or designee.
"Commercial cannabis business" means any commercial operation associated, in whole or
in part, with the cultivation, possession, manufacture, distribution, processing, storing,
laboratory testing and research, packaging, labeling, transportation, delivery or sale of
cannabis and cannabis products.
"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing,
grading, or trimming of cannabis.
"Delivery" means the commercial transfer of cannabis or cannabis products to a customer.
"Delivery" also includes the use by a retailer of any technology platform owned and
controlled by the retailer.
"Distribution" means the procurement, sale, and transport of cannabis and cannabis
products between entities permitted or licensed by the City and/or State of California.
"Fully enclosed and secured structure" means a space within a building, greenhouse, or
other approved structure which has a complete roof enclosure supported by connecting
walls extending from the ground to the floor, which is reasonably secure against
unauthorized entry, provides complete visual screening or is behind fencing or other
features providing complete visual screening, and which is accessible only through one of
more lockable doors and is inaccessible to minors.
"Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis
or cannabis products to customers and does not include cannabis cultivation or
manufacturing on the premises.
"Licensee" means the holder of any state issued license related to Commercial Cannabis
Businesses, including but not limited to licenses issued under Division 10 of the California
Business and Professions Code.
"Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a
cannabis product.
"Manufacturer" means a permittee that conducts the production, preparation, propagation,
or compounding of cannabis or cannabis products either directly or indirectly or by
extraction methods, or independently by means of chemical synthesis, or by a combination
of extraction and chemical synthesis at a fixed location that packages or repackages
cannabis or cannabis products or labels or relabels its container.
"Owner" means any of the following: (1) a person with an aggregate ownership interest of
20 percent (20%) or more in the person applying for the permit, unless such interest is
solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other
ORDINANCE NO.: 1329
entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be
participating in the direction, control, or management of the person applying for the permit.
"Permittee" means any person granted a regulatory permit under this chapter.
"Person" means any individual, firm, partnership, joint venture, association, corporation,
limited liability company, estate, trust, business trust, receiver, syndicate, or any other group
or combination acting as a unit, and the plural as well as the singular.
"Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis
or cannabis products to customers.
"Sell," sale," and "to sell" include any transaction whereby, for any consideration, title to
cannabis is transferred from one person to another, and includes the delivery of cannabis or
cannabis products pursuant to an order placed for the purchase of the same and soliciting
or receiving an order for the same, but does not include the return of cannabis or cannabis
products by a permittee or licensee to the permittee or licensee from whom such cannabis
or cannabis product was purchased.
"State license" means a state license issued under Division 10 of the California Business
and Professions Code.
"Testing and Research Laboratory" means a laboratory, facility, or entity in the City that
offers or performs tests of cannabis or cannabis products and meets the licensing
requirements found in MAUCRSA.
C. Regulatory Permit Required.
1. Prior to initiating operations and as a continuing requisite to operating a
commercial cannabis business in the City, an applicant must obtain and maintain a valid
conditional use permit as required under Section 25.34.120, regulatory permit, and a State
license for each commercial cannabis business use authorized under the conditional use
permit.
2. Building permits for improvements associated with a commercial cannabis
business may be issued once an applicant has obtained a conditional use permit and
regulatory permit; however, a certificate of occupancy to operate will not be issued until said
commercial cannabis business has obtained and provided proof of a State license for each
commercial cannabis business use authorized under the conditional use permit.
3. Changes in State license type, business owner, or operation will require an
amendment to the approved regulatory permit.
4. This chapter does not apply to cannabis possession or use, as allowed by
State law. Regulations on personal cultivation can be found in Chapter 8.38.
ORDINANCE NO.: 1329
5. A cannabis delivery service business with a physical address outside the City
is not required to obtain a regulatory permit under this chapter, but is required to obtain a
City business license.
D. Regulatory Permit Application Requirements.
An application for a regulatory permit shall include, but shall not be limited to, the following
information:
1. The name, address, and telephone number of the applicant.
2. A description of the statutory entity or business form that will serve as the
legal structure for the applicant and a copy of its formation and organizing documents,
including, but not limited to, articles of incorporation, certificate of amendment, statement of
information, articles of association, bylaws, partnership agreement operating agreement,
and fictitious business name statement.
3. The name, address, telephone number, title, and function of each of the
interested parties described in subsection N., below.
4. A legible copy of each applicant's photo identification, such as a state driver's
license, a passport issued by the United States, or a permanent resident card.
5. A list of the license or permit types (including license or permit numbers) held
by the applicant that involve the operation of a commercial cannabis business, including the
date the license or permit was issued and the jurisdiction or State license authority that
issued the license or permit.
6. Whether the applicant has been denied a license or permit by the City, any
other jurisdiction, and/or the State that involves the operation of a commercial cannabis
business. The applicant shall provide a description of the license or permit applied for, the
name of the jurisdiction or State license authority that reviewed the license or permit
application, and the date of denial.
7. The proposed commercial cannabis business's physical address, telephone
number, website address, and e-mail address.
8. Contact information for the applicant's designated primary contact person
including the name, title, address, phone number, and e-mail address of the individual.
9. A list of every fictitious business name the applicant is operating under
including the address where the business is located.
10. Financial information including the following:
a. A list of funds belonging to the commercial cannabis business held in
savings, checking, or other accounts maintained by a financial institution. The
ORDINANCE NO.: 1329
applicant shall provide for each account, the financial institution's name, the financial
institution's address, account type, account number, and the amount of money in the
account.
b. A list of loans made to the commercial cannabis business . For each
loan, the applicant shall provide the amount of the loan, the date of the loan, term(s)
of the loan, security provided for the loan, and the name, address, and phone
number of the lender.
c. A list of investments made into the commercial cannabis business.
For each investment, the applicant shall provide the amount of the investment, the
date of the investment, term(s) of the investment, and the name, address, and phone
number of the investor.
d. A list of all gifts of any kind given to the applicant for its use in
conducting commercial cannabis business. For each gift the applicant shall provide
the value of the gift or description of the gift, and the name, address, and phone
number of the provider of the gift.
11. A list of each applicant's misdemeanor and felony convictions, if any. For
each conviction, the list must set forth the date of arrest, the offense charged, the offense
convicted, the jurisdiction of the court, and whether the conviction was by verdict, plea of
guilty, or plea of nolo contendre.
12. A complete and detailed diagram of the proposed premises showing the
boundaries of the property and the proposed premises to be permitted, showing all
boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows,
doorways, and common or shared entryways, storage areas and exterior lighting. The
diagram must show the areas in which all commercial cannabis business will take place,
including but not limited to, limited -access areas.
13. A security plan, as a separate document, outlining the proposed security
arrangements to deter and prevent unauthorized entrance into limited access areas and
theft of cannabis, in accordance with minimum security measures required by state law.
The security plan shall be reviewed by the Palm Desert Police Department and the city
manager and shall be exempt from disclosure as a public record pursuant to Government
Code Section 6255(a).
14. A comprehensive business operations plan that includes the following:
a. Business plan. A plan describing how the commercial cannabis
business will operate in accordance with this code, state law, and other applicable
regulations. The plan shall include operational, banking, and personnel procedures
to ensure adequate business knowledge, modeling and support.
ORDINANCE NO.: 1329
b. Community relations plan. A plan describing who is designated as
being responsible for outreach and communication with the surrounding community,
including the neighborhood and businesses, and how the designee can be
contacted.
c. Neighborhood responsibility plan. A plan addressing any adverse
impacts of the proposed commercial cannabis business on the surrounding area.
d. Odor control plan. A plan identifying odor control methods, including,
but not limited to, use of odor absorbing ventilation and exhaust systems, negative
air pressure, and other treatments.
e. Insurance. The applicant's certificate of commercial general liability
insurance and endorsements and certificates of all other insurance related to the
operation of the commercial cannabis business.
f. Budget. A copy of the applicant's most recent annual budget for
operations.
15. The name and address of the owner and lessor of the real property upon
which the commercial cannabis business is to be operated. In the event the applicant is not
the legal owner of the property, the application must be accompanied with a notarized
acknowledgement from the owner of the property that a commercial cannabis business will
be operated on his or her property.
16. Authorization for the city manager to seek verification of the information
contained within the application.
17. A statement in writing by the applicant that he or she certifies under penalty of
perjury that all the information contained in the application is true and correct.
18. A full and complete copy of the applicant's most current application submitted
to and approved by the applicable State licensing authority.
19. Any such additional and further information as is deemed necessary by the
city manager to administer this chapter.
E. Background Check.
The City will provide each applicant and interested parties, as described in Section N.,
below, with a `request for live scan service' form, which must be taken to a live scan
operator for fingerprinting. Each applicant must submit their fingerprint images to the Palm
Desert Police Department, California Department of Justice, and the Federal Bureau of
Investigation for fingerprint -based criminal history records review and reporting to the City.
ORDINANCE NO.: 1329
F. Additional Terms and Conditions.
Based on the information set forth in the application, the city manager may impose
reasonable terms and conditions on the proposed operations of the commercial cannabis
business in addition to those specified in this chapter.
G. Regulatory Permit Denial.
The city manager may deny an application for a regulatory permit or renewal of a
regulatory permit upon making any of the following findings:
1. The applicant or the premises for which a regulatory permit is applied does
not qualify for a permit under this chapter.
2. The applicant fails to comply with the provisions of this chapter.
3. The applicant has failed to provide information required by the city manager.
4. The applicant or permittee has been convicted of an offense that is
substantially related to the qualifications, functions, or duties of the business or profession
for which the application is made, except that if the city manager determines that the
applicant or permittee is otherwise suitable to be issued a license and granting the license
would not compromise public safety, the city manager shall conduct a thorough review of
the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the
applicant, and shall evaluate the suitability of the applicant or permittee to be issued a
permit based on the evidence found through the review. In determining which offenses are
substantially related to the qualifications, functions, or duties of the business or profession
for which the application is made, the city manager shall include, but not be limited to, the
following:
5. A felony conviction for the illegal possession for sale, sale, manufacture,
transportation, or cultivation of a controlled substance.
6. A violent felony conviction, as specified in subdivision (c) of Section 667.5 of
the Penal Code.
8. A serious felony conviction, as specified in subdivision (c) of Section 1192.7
of the California Penal Code.
9. A felony conviction involving fraud, deceit, or embezzlement.
10. The applicant, or any of its officers, directors, or owners, has been sanctioned
by a State licensing authority or a city, county, or city and county for unlicensed commercial
cannabis activities or has had a State license revoked in the three years immediately
preceding the date the application is filed with the city manager.
11. The commercial cannabis business is not properly organized or operating in
strict compliance pursuant to the Compassionate Use Act of 1996, the Medical Marijuana
Program Act ("MMP"), Medicinal and Adult -Use Cannabis Regulation and Safety Act
("MAUCRSA"), and any other applicable law, rules and regulations.
ORDINANCE NO.: 1329
H. Regulatory Permit Term.
A regulatory permit is valid for one (1) year from the date that the permit is issued, unless
suspended or revoked sooner.
I. Regulatory Permit Renewal Process.
1. To renew a regulatory permit, a completed permit renewal form and renewal
permit fee shall be received by the city manager from the permittee no earlier than sixty (60)
calendar days before the expiration of the permit and no later than the last business day
before the expiration of the permit.
2. In the event the regulatory permit is not renewed prior to the expiration date,
the permittee must cease all commercial cannabis business.
J. Regulatory Permit Surrender.
Every permittee who surrenders, abandons, or quits the permitted premises after a
certificate of occupancy is issued, or who closes the permitted premises for a period
exceeding sixty (60) consecutive calendar days after a certificate of occupancy is issued,
shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the
permitted premises, surrender the permit to the city manager. The city manager may seize
the permit of a permittee who fails to comply with the surrender provisions of this section
and may proceed to revoke the permit. If a permittee wishes to close a commercial
cannabis business for repair or refurbishment for a period of longer than sixty (60) calendar
days, the permittee shall notify the city manager of same in writing.
K. Regulatory Permit Suspension and Revocation.
The city manager may suspend, modify, or revoke a regulatory permit issued pursuant to
the provisions of this Chapter for any of the following reasons:
1. One or more of the circumstances upon which a regulatory permit could be
denied exists or has occurred;
2. One or more conditions of the regulatory permit has been violated; or
3. The permittee, its owners, officers, directors, partners, agents, or other
persons vested with the authority to manage or direct the affairs of the business have
violated any provision of this chapter or State law.
L. Appeals.
Any decision regarding the denial, suspension, or revocation of a regulatory permit may be
appealed to the city council. All appeals shall be in writing and filed with the city clerk within
ten calendar days of any decision or action that is the subject of the appeal. After receiving
the written appeal, the city clerk shall schedule a hearing before the city council. The city
council may refer the matter to a hearing officer. The city council may decide the matter
based on the recommendations and findings of the hearing officer, if it so chooses. The
decision of the city council or hearing officer shall be final.
ORDINANCE NO.: 1329
M. Operational Requirements.
All commercial cannabis businesses are subject to the following operational requirements:
1. Commercial cannabis businesses shall maintain compliance with the security
plan, business plan, community relations plan, neighborhood responsibility plan, odor
control plan, and insurance requirements submitted with their application, unless
modifications are accepted in writing by the city manager.
2. Commercial cultivation, possession, manufacture, processing, storing,
laboratory testing and research, packaging, and labeling, shall be conducted only within a
fully enclosed and secured structure that is not accessible to minors.
3. Commercial cannabis businesses shall not create nuisances such a dust,
glare, heat, noise, smoke, odor, and shall not be used to store hazardous materials,
products, or wastes.
4. Commercial cannabis businesses shall utilize product and inventory tracking
software and accounting software that is in -line with reasonable business practices within
the industry.
5. As part of the security plan, permittees shall:
a. Install and maintain security cameras that shall cover, but not be
limited to covering sale, cultivation, manufacturing, processing, transportation,
distribution areas, all doors and windows, and any other areas as reasonably
determined by the Planning Commission.
b. Operate cameras 24 hours per day, seven days per week.
c. Maintain at least 120 concurrent hours of digitally recorded
documentation.
d. Cure any disruption in security camera images expeditiously and in
good faith.
e. Install alarm systems that are operated and monitored by an
independent third party security company.
f. Shall lock all storage areas and give access to such storage areas
only to permittee and permittee's staff. No cannabis products shall be accessible to
the general public.
6. Commercial cannabis businesses shall not advertise or promote cannabis or
cannabis products that encourage use by persons under the age of 21, or promote
cannabis and cannabis products within 1,000 feet of a school, daycare, park, or youth
center.
ORDINANCE NO.: 1329
N. Interested Parties.
1. A permittee shall provide the city with names and addresses of all of the
following interested parties:
a. Persons with at least a 10% interest in the commercial cannabis
business;
b. Partners, officers, directors, and stockholders of every corporation,
limited liability company, or general or limited partnership that owns at least 10% of
the stock, capital, profits, voting rights, or membership interest of the commercial
cannabis business or that is one of the partners in the commercial cannabis
business;
c. The managers of the commercial cannabis business; and
d. The staff of the commercial cannabis business.
2. The permittee shall notify the city of any change in the information above
within 30 calendar days of the change.
3. All interested parties, as described in subsection 1, must submit to
fingerprinting and a criminal background check by the city.
4. No person shall be an interested party, as described in subsection A of this
Section, if he or she is charged with or convicted of a felony; has been charged with or
convicted of a violation of California Penal Code section 188.22 (participation in a criminal
street gang); or is currently on parole or probation for an offense relating to the sale or
distribution of a controlled substance. "Convicted" within the meaning of this section means
a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered,
but does not include any plea, verdict, or conviction that is expunged pursuant to California
law or a similar federal or state law where the expungement was granted. "Charged" within
the meaning of this section means (1) an indictment was issued by a grand jury, or an
information, complaint, or similar pleading was issued by the United States Attorney, district
attorney, city attorney, or other governmental official or agency authorized to prosecute
crimes, and (2) the criminal proceedings are currently pending.
O. Emergency Contact Manager.
A commercial cannabis business permittee shall provide the city manager with the current
name and primary and secondary telephone numbers of at least one 24-hour on -call
manager to address and resolve complaints and to respond to operating problems or
concerns associated with the commercial cannabis business.
ORDINANCE NO.: 1329
P. Community Relations Manager.
Each commercial cannabis business shall provide the city manager with the name, phone
number, facsimile number, and e-mail address of an on -site community relations or staff
person or other representative to whom the city can provide notice if there are operating
problems associated with the commercial cannabis business or refer members of the public
who may have any concerns or complaints regarding the operation of the commercial
cannabis business. Each commercial cannabis business shall also provide the above
information to its business neighbors located within one hundred (100) feet of the
commercial cannabis business as measured in a straight line without regard to intervening
structures, between the front doors of each establishment.
Q. Display of Regulatory Permit.
The permittee shall display its current valid permit issued in accordance with this chapter
inside the lobby or waiting area of the main entrance to the premises. The permit shall be
displayed at all times in a conspicuous place so that it may be readily seen by all persons
entering the premises.
R. inspections and Enforcement.
1. Recordings made by security cameras at any commercial cannabis business
shall be made immediately available to the city manager upon verbal request; no search
warrant or subpoena shall be needed to view the recorded materials.
2. The city manager shall have the right to enter all commercial cannabis
businesses from time to time unannounced for the purpose of making reasonable
inspections to observe and enforce compliance with this chapter.
3. Operation of the commercial cannabis business in non-compliance with any
conditions of approval or the provisions of this chapter shall constitute a violation of the
municipal code and shall be enforced pursuant to the provisions of this code.
4. The city manager may summarily suspend or revoke a cannabis regulatory
permit if any of the following, singularly or in combination, occur:
a. The city manager or designee determines that the commercial
cannabis business has failed to comply with this chapter or any condition of approval
or a circumstance or situation has been created that would have permitted the city
manager or designee to deny the permit under subsection F., above.
b. Operations cease for more than sixty (60) calendar days, including
during change of ownership proceedings, unless otherwise authorized by the city
manager;
c. Ownership is changed without securing a regulatory permit; or
ORDINANCE NO.: 1329
d. The commercial cannabis business fails to allow inspection of the
records, security recordings, the activity logs, or the premises by authorized city
officials.
S. Liability and indemnification.
1. To the fullest extent permitted by law, any actions taken by a public officer or
employee under the provisions of this chapter shall not become a personal liability of any
public officer or employee of the City.
2. To the maximum extent permitted by law, the permittees under this chapter
shall defend (with counsel acceptable to the City), indemnify and hold harmless the City of
Palm Desert, the Palm Desert City Council, and its respective officials, officers, employees,
representatives, agents and volunteers (hereafter collectively called City) from any liability
damages, actions, claims, demands, litigation, Toss (direct or indirect), causes of action,
proceedings or judgment (including legal costs, attorneys' fees, expert witness or consultant
fees, City Attorney or staff time, expenses or costs (collectively called "action") against the
City to attack, set aside, void or annul, any cannabis -related approvals and actions and
comply with the conditions under which such permit is granted, if any. The City may elect,
in its sole discretion, to participate in the defense of said action and the permittee shall
reimburse the City for its reasonable legal costs and attorneys' fees.
3. Within ten (10) calendar days of the service of the pleadings upon the City of
any action as specified in Subsection 2., above, the permittee shall execute a letter of
agreement with the City, acceptable to the Office of the City Attorney, which memorializes
the above obligations. These obligations and the letter of agreement shall survive
terrnination, extinguishment or invalidation of the cannabis -related approval. Failure to
timely execute the letter of agreement does not relieve the applicant of any of the
obligations contained in this section or any other requirements or performance or operating
standards that may be imposed by the City.
To the fullest extent permitted by law, the City shall not assume any liability whatsoever,
with respect to approving any regulatory permit pursuant to this chapter or the operation of
any commercial cannabis business approved pursuant to this chapter.
T. Compliance with State Law.
All commercial cannabis businesses shall comply fully with all of the applicable restrictions
and mandates set forth in state law, including without limitation the Compassionate Use Act
of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult -
Use Cannabis Regulation and Safety Act ("MAUCRSA").
ORDINANCE NO.: 1329
U. Violations and Penalties.
1. In addition to any other remedy allowed by law, any person who violates a
provision of this chapter is subject to criminal sanctions, civil actions, administrative
penalties, permit suspension, and permit revocation.
2. Violations of this chapter constitute an infraction or misdemeanor and may be
enforced by any applicable law.
3. Violations of this chapter are hereby declared to be public nuisances.
4. Each person is guilty of a separate offense each day a violation is allowed to
continue and every violation of this chapter shall constitute a separate offense and shall be
subject to all remedies.
5. All remedies prescribed under this chapter shall be cumulative and the
election of one or more remedies shall not bar the city from the pursuit of any other remedy
for the purpose of enforcing the provisions hereof.
ORDINANCE NO.: 1329
Exhibit "E"
PDMC Chapter: 8.38 — Personal Use of Cannabis
A. Purpose and intent
It is the purpose and intent of this chapter to regulate the personal use and possession of
medicinal cannabis and non -medicinal adult use cannabis within the City of Palm Desert in
compliance with applicable state and local laws.
B. Definitions
"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or
purified, extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means
the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not
include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from
the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or
the sterilized seed of the plant which is incapable of germination.
"Cannabis products" means cannabis that has undergone a process whereby the plant
material has been transformed into a concentrate, including, but not limited to, concentrated
cannabis, or an edible or topical product containing cannabis or concentrated cannabis and
other ingredients.
"City" means the City of Palm Desert.
"Day care center" means any child day care facility including infant centers, preschools,
extended day care facilities, and school age child care centers.
"Personal residence" means a house, an apartment unit, a mobile home, or other similar
dwelling.
"Smoke" means to inhale, exhale, burn, or carry any lighted or heated device or pipe, or any
other lighted or heated marijuana or marijuana product intended for inhalation, whether
natural or synthetic, in any manner or in any form. "Smoke" includes the use of an electronic
smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of
any oral smoking device for the purpose of circumventing the prohibition of smoking in a
place.
"Youth center" means any public or private facility that is primarily used to host recreational
or social activities for minors, including, but not limited to, private youth membership
organizations or clubs, social service teenage club facilities, video arcades, or similar
amusement park facilities.
C. Personal Use and Possession
All personal use and possession of cannabis must be in compliance with the
Compassionate Use Act ("Act"), the Medical Marijuana Program ("MMP"), and the Medicinal
and Adult -Use Cannabis Regulation and Safety Act ("MAUCRSA").
In addition, the restrictions listed below apply. It shall be unlawful and a public nuisance to:
1. Smoke or ingest cannabis or cannabis products in a public place, including, but not
limited to streets, sidewalks, parks, or any common areas within a residential
development, including but not limited to private streets and sidewalks, common
parking areas, parks or other spaces maintained by an homeowners or property
owners association and accessible to residence of the development.
2. Smoke cannabis or cannabis products in a location where smoking tobacco is
prohibited under Chapter 8.36 Regulation and Prohibition of Smoking.
3. Possess, smoke or ingest cannabis or cannabis products in or upon the grounds of a
school, day care center, or youth center; or smoke cannabis or ingest cannabis
within 1,000 feet of a school, day care center, or youth center, except in or upon
grounds of private residence and then only if such smoking is not detectable by
others on the grounds of any school, day care center, or youth center.
4. Smoke cannabis or use cannabis products on City property, including parks,
common areas in City -owned housing developments, and other public places.
D. Penalties for Violation
1. Any person who violates any provision of this chapter is deemed guilty of
misdemeanor or an infraction, at the discretion of the City Attorney or the District
Attorney in accordance with Chapter 1.12 of this code.
2. Any violation of this chapter is hereby declared to be a public nuisance.
3. Each incident of smoking in violation of this chapter is subject to a one -hundred -fifty -
dollar fine.
4. The provisions of this section are not to be construed as exclusive remedies and, in
the event of violation, the city may pursue any proceedings or remedies otherwise
provided by law.
2
Ceja, Eric
From: Sweet Pappy Jones <sweetpappyjones@gmail.com>
Sent: Thursday, September 28, 2017 10:52 PM
To: CityhallMail; Ceja, Eric
Subject: [SPAM] - Urgent Commercial Cannabis Concerns
Good evening!
I am a Palm Desert resident, and I am very concerned about the changes that were proposed this evening at the City
Council meeting.
As someone looking to get in to the Commercial Cannabis business, I have been doing my due diligence for months,
working off of proposed state and city guidelines. It has been exceedingly difficult, as is.
There are many zones proposed for retail cannabis, but actual availability is scarce. If you can find a building owner
willing to entertain your business, you are subject to other businesses, typically national anchors, who can refuse to
accept such businesses.
If you are able to find a location and not have any objections, you are subjected to extortionate rates, with
landlords/real estate agents clearly just keeping potential tenants on the hook while waiting for the highest bidder.
Adding a 1,000 foot buffer between churches, schools, and commercial Cannabis is in excess of California State
regulation, and further limits options for people looking for locations, and further empowers the building owners and
real estate agents in their control of the market.
Limiting El Paseo to one dispensary is completely unfair, and could very well create the perception of a monopoly in the
Palm Desert cannabis industry. My group has had more success looking for potential spots on El Paseo than anywhere
else, and to allow only one would be completely unfair. If not the proposed three per street, the 1,500 foot rule should
still apply.
Thank you for hearing my concerns; I am sure you will do what is right for the population of this city, and the majority of
Californians who voted for these laws.
1
Ceja, Eric
From: Desert SafeMJ <desertsafemj@gmail.com>
Sent: Thursday, September 28, 2017 11:47 PM
To: Ceja, Eric
Cc: CityhallMail
Subject: [SPAM] - New Cannabis Rule Amendment Oppositions
Dear City Council and Eric
Our cannabis group wanted to bring a few things to your attention regarding the council's call for 5 amendments
to the Cannabis ordinance that was supposed to be passed tonight. First thing is that some of these "tweaks" that
they are proposing are going monopolize and undermine the entire process for cannabis dispensaries inside the
city of Palm Desert. For instance, since August the draft proposed guidelines and cleared areas in which to put
these dispensaries and businesses have remained relatively unchanged until tonight. By increasing the buffer
from schools etc to 1000ft based on "outside advertising" to keep things uniform by councilman Kelly will be
destructive to this already very difficult process. Furthermore if the city does not want these shops to have
markings or visual references to cannabis, why take it out on the businesses and limit them, just simply ban
physical advertising all together. The apps Weedmaps and Leafly account for a 95% market share on cannabis
advertising anyways. Also by extending to 1000 ft it will eliminate already purchased or rented area looking to
open cannabis businesses leaving some upside down in their investments since these drafts and areas were
proposed and the realtor are exploiting everyone. With the proposed zones no one has additionally discussed
how inside the shopping centers the city has permitted for usage have essentially become useless other than
HWY 111 and El Paseo as time and time again we have been shot down from national anchors who hold first
right of refusal and or building owners with mortgages still owed on with banks don't approve. This renders
entire areas of the proposed zones inapplicable. The only cleared buildings our group have come across paid for
free and clear by the owners and willing to play ball with cannabis groups are only on El Paseo and on HWY
111. Another factor is the 1500 ft rule and the grey area it presents in verbiage. If dispensaries have to be 1500
away from each other and the vertical distance between El Paseo and HWY 111 is only 750ft, since both streets
run parallel in addition to the proposed tweak of only 1 or potentially 2 shops on El Paseo, this essentially is a
monopoly if El Paseo get precedent based on merit over HWY 111 locations. So my question is that since
council will determine the "merit" of each conditional use application, who decides who or how will a location
get decided if the locations run parallel to each other on HWY 111 and El Paseo. Additionally if the ordinance
is saying there will he three dispensaries per street how is this fair if an El Paseo shop can negate a HWY 11
shop running parallel. It is specified in the draft ordinance from floor space to floor space not street per street
which is unfair. The reality is that with these new tweak there will literally only be 2 shops based on our
research and endless search of cannabis approved location creating a bad image for the city of Palm Desert.
This will also attract loophole cannabis church group to set up and operate to fill the void in the city that cannot
be shut down (Look at MTC in Coachella) We have heard that specific group intends to open before Jan 1st in
Rancho Mirage and Palm desert and will sell recreationally immediately without state or city license and cannot
be shut down as state cannot legally intervene on churches. This loophole (which is very real if you look into
this) is direct threat to the city's cannabis ordinance unless council opens up and create less restrictions for
cannabis dispensaries. We strongly urge council to keep the rules as they were presented before these "tweaks"
3 per street and then to add that the 1500ft is measured per street. Think about it 100's of high school kids per
day walk home along Cook street and stop at Alcobar or Jensens, this is an area that will have manufacturing,
delivery or cultivation so what is the point of extending the 1000 ft rule especially when there is no school in
that area. These tweaks will severely hurt Palm Desert and open up all sorts of problems.
i
Ceja, Eric
From: Stanley, Jane
Sent: Monday, October 02, 2017 10:23 AM
To: Ceja, Eric
Subject: FW: marijuana and costs of 911
Blind copied to the City Council
Original Message
From: Wood, Terry L.
jmailto:terrvorodPaol.comj
Sent: Sunday, October 01, 2017 8:22 AM
To: CityhallMail
Subject: marijuana and costs of 911
Dear Mayor and City Council Members,
I write this letter to you again to remind you that your meetings for the public are still too early because the majority of
us work, so whatever you are discussing and passing I believe isn't the will of the people that reside here in Palm Desert.
First, whose idea was it to have marijuana dispensaries located it our city? This should be put on the ballot for citizens to
vote for, I myself strongly oppose this kind of business located in our city. When I heard that there were possible plans
of opening a location on El Paseo ,I was shocked. It is bringing the wrong message about our city and it makes it look
cheap and crime like when you bring in that kind of business. Let people go to other cities that already have them. I feel
that you only want them because of tax revenue!
Secondly, the other subject that I would like to bring up is the cost of emergency services. If I am correct assisted places
like Fountains at Carlotta and Atria are allowed to call 911 as much as they want without paying any extra?
If this correct, then our city needs to correct this right away. A resident should be able to call fire or ambulance at least
once a year without paying a bill because they pay property taxes that contribute to city services. But, commercial
businesses that are profiting from their high risk business of older senior citizens should have to pay at least $100.00
each time they call for an ambulance , the city shouldn't be providing this free to a business of this type.
I would like this put in the minutes and read at the next council meeting.
Thank you,
Terry Wood
Palm Desert
1
ORDINANCE NO. 1329
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE
AMENDMENT AMENDING PALM DESERT MUNICIPAL CODE
CHAPTERS 25.34.120, 25.16 AND 25.18 TO ALLOW COMMERCIAL
CANNABIS OPERATIONS IN THE CITY, SUBJECT TO A
CONDITIONAL USE PERMIT; AND ESTABLISH CHAPTERS 5.101
COMMERCIAL CANNABIS REGULATORY PERMITS AND 8.38
PERSONAL USE OF CANNABIS
CASE NO: ZOA 17-027
WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by
Article XI, Section 7 of the California Constitution, the City has the police power to regulate the
use of land and property within the City in a manner designed to promote public convenience
and general prosperity, as well as public health, welfare, and safety; and
WHEREAS, adoption and enforcement of comprehensive zoning regulations and other
land use regulations lies within the City's police powers; and
WHEREAS, California has adopted, through ballot initiative, the Control, Regulate, and
Tax Adult Use of Marijuana Act (AUMA) to regulate the adult personal and commercial use of
cannabis, pursuant to local authority preserved in the AUMA; and
WHEREAS, the City Council established an Ad Hoc Cannabis Committee, comprised
of industry representatives, community members, and City staff, to review a potential cannabis
ordinance and to make recommendations for changes to the City's Municipal Code to allow
and regulate cannabis businesses; and
WHEREAS, the Planning Commission of the City of Palm Desert, Califomia, did on the
1st day of August 2017, hold a duly noticed public hearing to consider changes to the City's
Zoning Ordinance to allow cannabis businesses in the City subject to approval of a Conditional
Use Permit and certain regulations and adopted a resolution recommending approval of the
changes to the municipal code to the City Council; and
WHEREAS, the City Council of the City of Palm Desert, California, did on the 24th day
of August, 2017, hold a duly noticed public hearing to consider changes to the Municipal Code
of the City of Palm Desert, and continued the request until September 7th, 2017; and
subsequently continued the request until September 28th, 2017, to allow additional time to
separate the proposed ordinance changes and to distinguish between personal and
commercial cannabis use; and
WHEREAS, the City Council of the City of Palm Desert, California, did on the 28th day
of September, consider the proposed changes to the Palm Desert Municipal Code to establish
land use and business regulations for personal and commercial cannabis use and operations
and continued the request to their meeting of October 12, 2017, and directed staff to limit the
total number of permits available for retail cannabis, to limit the total number of retail cannabis
business on El Paseo, to expand the definition of testing and research facilities, to incorporate
language requiring Code Covenant and Restrictions (CC&Rs) review ; and
ORDINANCE NO. 1329
WHEREAS, the requirements established in the ordinance ensure that cannabis
businesses can operate in the City in a safe and limited manner, subject to review and
approval of a Conditional Use Permit by the Planning Commission; and
WHEREAS, the requirements established in this ordinance ensure that cannabis
businesses operate in accordance with State Law and requires that all commercial cannabis
operations obtain licensing from the State Bureau of Cannabis Control; and
WHEREAS, the City Council of the City of Palm Desert, California has determined that
the amendments to Municipal Code Chapters 25.34.120, 25.16, 25.18, and establishing
Chapters 5.101 and 8.38, are consistent with the General Plan and applicable state law; and
WHEREAS, at said public hearing, upon hearing and considering all testimony and
arguments, if any, of all interested persons desiring to be heard, said City Council did find
the following facts and reasons to exist to approve said request:
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm
Desert, California as follows:
SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing
recitals as its findings in support of the following regulations and further finds that the
following regulations are beneficial and appropriate to protect the health, safety and welfare
of the residents and businesses of Palm Desert within the City limits.
SECTION 2. Adoption to rescind and replace Chapter 25.34.120 "Medicinal
Cannabis Uses" with Chapter 25.34.120 "Cannabis Use and Regulations" of the Citv's
Zoning Ordinance as identified in Exhibit "A" attached to this Ordinance.
SECTION 3. Adoption of amendments to Chapter 25.16 "Commercial and
Industrial Districts" of the Citv's Zoning Ordinance as identified in Exhibit "B"
attached to this Ordinance.
SECTION 4. Adoption of amendments to Chapter 25.02 "Downtown Districts
Development Standards" of the Citv's Zoning Ordinance as identified in Exhibit "C"
attached to this Ordinance.
SECTION 5. Adoption to establish Chapter 5.101 "Commercial Cannabis
Regulatory Permits" of the Citv's Municipal Code as identified in Exhibit "D" attached
to this Ordinance.
SECTION 6. Adoption to establish Chapter 8.38 "Personal Use of Cannabis" of
the Citv's Municipal Code as identified in Exhibit "E" attached to this Ordinance.
SECTION 7. Severability. If any section, subsection, subdivision, paragraph,
sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be
unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision
shall not affect the validity or effectiveness of the remaining portions of this ordinance or any
part thereof. The Planning Commission hereby declares that it would have passed each
section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof
2
ORDINANCE NO. 1329
irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs,
sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective.
SECTION 8. California Environmental Quality Act Finding. The City of Palm
Desert (City), in its capacity as the Lead Agency under the California Environmental Quality
Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from
CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a
direct or reasonable foreseeable indirect physical change in the environment, and Section
15061 (b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a
"project" and is not subject to CEQA review. At their meeting on August 1, 2017, the
Planning Commission adopted a Notice of Exemption under the CEQA guidelines.
SECTION 9. Publication. The City Clerk of the City of Palm Desert, California, is
hereby directed to publish this ordinance in The Desert Sun, a newspaper of general
circulation, published and circulated in the City of Palm Desert, California, and shall be in full
force and effect thirty (30) days after its adoption.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm
Desert, California, at its regular meeting held on the day of , 2017, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
JAN C. HARNIK, MAYOR
3
MARIJUANA ANTI -PROHIBITION PROJECT
AMERICAN HARM REDUCTION ASSOCIATION
Compassion and Common Sense
PO Box 739, Palm Springs CA 92263-0739
Phone - 760-799-2055
www.mariivananews.orq - email to1anny@marijananews.org
October 12, 2017
To: Palm Desert City Council
Subject: Issuance of License for Marijuana Dispensary
In 2005 I, along with 10 members of the Marijuana Anti -Prohibition Project, appeared before the
Palm Desert City Council when the Council was considering for the first time a moratorium on
allowing medical marijuana collectives to operate.
After hearing our presentations, the Council chose to table the moratorium for further
consideration. So began the saga of marijuana distribution in Palm Desert that over the last
decade has undergone a number of differing permutations from moratoriums to bans. It may
have taken longer that I would like to have seen, but I am delighted that the Palm Desert City
Council is now considering the Iicensing of marijuana businesses.
In addition to complying with directions of the voters of California and Riverside County to
legalize the sale of marijuana to all adults 21 and over, the issuance of licenses will allow for
Palm Desert residents to access marijuana without making drives to other localities, provide a
new source of tax revenue for the city and significantly reduce illegal sales by criminals.
With the above foremost in mind, I am delighted to highly recommend the issuance of a license
to Julie Montante operator of PS Organica in Palm Springs. I have known Julie for over six years
and have always been impressed by her dedication to providing quality cannabis products to her
clients at fair prices. Her store in Palm Springs is impressive not only for its line of cannabis
products that are presented in well -designed and stylish layout but for the knowledgeable and
compassionate service provided by the store's employees.
PS Organica should also be noted for its professional appearance and operation and its adherence
to and compliance with all of Palm Springs Iicensing and regulatory requirements. I am sure
Julie will bring the same level of competency and professionalism to her store in Palm Desert.
Most importantly, Julie has been and continues to be involved with the community prop iding
financial and other forms of assistance to a wide variety of community organizations. As an
organizer in the Coachella Valley cannabis community, I have always been impressed by the
help she has provided to medical marijuana patients in need of assistance and have appreciated
the support she has shown to cannabis organizations working on the local level to assure safe,
reliable and local access.
Sincerely,
14441. S44/14.4144/
Lanny Swerdlow, RN LNC
Executive Director
8S O NW 01 130 i1O
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1